Brainwars 2024

Round 1 submission
Team Fusion - Hansraj College
Krishna Kanhaiya
Shlok Monga
Mahak Khandelwal
Garvit Mehrotra
DBS BrAINWARS 2024_Round 1 Submiss ...
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 INDUSTRY ANALYSIS AND COMPETITOR ANALYSIS
The frozen dessert industry is poised for growth with a projected CAGR of 6.63% over the next 7 years, presenting opportunities for innovation and
expansion.
INDUSRTY ANALYSIS COMPETITOR ANALYSIS

MARKET VALUE CHART* YOGURT MARKET SIZE Company Revenue Growth Overview Distribution
120000 200
MARKET SIZE
A global leader in sustainable food B2C
130.66 7%
and beverage
100000
Billion Danone
150

80000 in 2024 Renowned ice cream company

4.5% known for its unique flavors and B2C
60000 100 Ben & Jerry’s social activism
Projected
CAGR of Offers a wide range of products for B2C
40000 4.7%
every taste and lifestyle.
50 6.6% 6.63% in next Nestle
20000 7 years A popular frozen desserts chain
7.5% offering delicious and customizable FRANCHISE
0 0
2024 2025 2026 2024 2029 2032 16 Handles treats

INDUSTRY TRENDS SECONDARY RESEARCH FUTURE PROSPECTS

8

Demand for Analysis suggests a rising consumer

6

appetite for low-fat ice cream,

According to 2022 data, the US The frozen dessert
Low-fat and frozen dessert market exhibits a
Non-dairy
4
potentially driven by health
per capita consumption of 10kg
market is poised for
2 concerns, improved formulations,
Products 0
2022 2023 2024
and targeted marketing growth driven by
Emerging markets in the Asia
In the United States, 2022 data increasing demand for
Asia-Pacific is the reveals a per capita consumption
Fastest Growing
Pacific region are
of yogurt at 6kg* healthier and plant-based
experiencing a surge in frozen
Market dessert sales, outpacing options
established Western
markets..
 COMPANY OVERVIEW
ABC Ltd. specializes in frozen desserts, primarily yogurt, with stable profits and a growth market.
FAMILY OWNED BUSINESS YOGURT VERTICAL ANALYSIS
A multigenerational family enterprise thrives on dedication, merging tradition with
innovation to foster a sustainable business environment, safeguarding a cherished ABC Ltd. offers yogurt in 5 flavors in 50ml and 100ml cups, contributing
legacy through shared values and accountability.
significantly to their revenue stream.
PRODUCT PORTFOLIO
EXISTING PRODUCTS NEW PRODUCTS Hazelnut Strawberry
20% NEW 20%
PAST PROFITS
PRODUCTS
YOGURT SORBET USD (IN MILLIONS)
3
EXISTING MARKET

3
5 UNIQUE
FLAVOURS 2
EXISTING MARKET OFFERINGS

Mango Vanilla 2
20% 20%
1
85% Revenue Generating Primarily favored by 1
Category younger demographics 0
PROFIT IN 2021 PROFIT IN 2022 PROFIT IN 2023
Tuty Fruity
20%

CUSTARD ICE CREAM MARKET SEGMENTATION

Age
Group Kids Teens Adults Senior
Niche Product Category Heterogeneous
with limited popularity clientele,seasonal Percentage 30% 40% 20% 10%
interests
PROBLEM STATEMENT
STAGNANT PROFIT PROBLEM ASSUMPTIONS ATTAINABLE TARGETS

The Profits have remained stagnant

at $3 Million from the Yogurt
ABC Ltd. may prioritize maintaining
operational efficiency over pursuing
rapid profit growth, leading to stable
1 Increase Profatibility

vertical but not necessarily increasing profits.

2
Despite of a industry growth rate of Client’s Cost Structure
6.63% Analysis

PAST PROFITS

Projected CAGR of
Shifts in consumer preferences
towards healthier alternatives or other
dessert options could impact profit
3 New Investment’s
Feasibility

6.6% 6.63% in next 7 years growth.

3
USD (IN MILLIONS) 4 Vegan Yogurt Launch
Analysis For Breakeven

2
Lack of significant product innovation
or introduction of new flavors could
contribute to stagnant profits.
5 Risk Mitigation
Strategies

1 6 Summarize Analysis and

Recommend Solutions
0
PROFIT IN 2021 PROFIT IN 2022 PROFIT IN 2023
Analyzing the Business Model – Ansoff Matrix & Current Market Insights
EXISTING
EXISTING PRODUCTS
PRODUCTS NEW
NEW PRODUCTS
PRODUCTS MARKET INSIGHTS

According to the Food & Health Survey 2020 by the

MARKET

International Food Information Council (IFIC), 85% of

MARKET

Americans have altered their eating habits in some way

due to the pandemic.
Existing Market Existing Market
EXISTING
EXISTING

Frozen Food Industry Food Food Industry

Existing Product New Product
36% of Americans are lactose intolerant, according
Dairy-Based Frozen Non Dairy-Based Frozen to a recent study.
Dessert Dessert

The Global Vegan Dessert Market reached USD 2.9 billion in

2022 and is projected to witness lucrative growth by reaching
up to USD 5.8 billion by 2030.
NEW MARKET

The U.S. food ingredients market size was valued at USD

New Market New Market 107.87 billion in 2023 and is expected to reach USD
Food Service Partnerships Plant-Based Food Industry 163.08 billion by 2032, growing at a CAGR of 4.70% from
Existing Product 2023 to 2032.
Unique Flavours/Ingredient
New Product
Supply Chain Functional Frozen Desserts
Strategies To Enhance Profitability
YOGURT VERTICAL OVERALL PROFITABILITY
CAGR of 6.63% in
BULK PACKAGING FOR FOOD
$22.35 million* 6.6% next 7 years
Current year Revenue
SERVICE
$19 million
Current year Revenue
SEASONAL COLLABORATIONS from sale of Yogurts 1. MARKET EXPANSION 2. COST OPTIMIZATION

SEASONAL OFFERINGS Partnerships With Food Operational Streamlining and

$3 million Services Industry Optimize Ingredient Efficiency
Profit Generated per
ONLINE RECIPE HUB 10000

year from 3 years

1000

8000
800
Optimize ingredient usage and
Food service margins are on the
600
6000
streamline operations through
rise, creating a prime chance to
INTERNATIONAL EXPANSION 400
boost revenue.
4000 lean manufacturing principles to
200 2000 reduce waste and lower overall
0 0
costs.
2019 2020 2021 2022 2020 2021 2022 2023

OPERATIONAL ENHANCEMENTS CUSTOMER LOYALTY SCHEMES

Streamline processes and Resource
optimization, reducing operational cost
Elevating customer loyalty through
tailored incentives, driving a 15%
3. MARKETING STRATEGIES 4. PRODUCT DIVERSIFICATION
by 10%. increase in retention.
Seasonal Promotions Plant-Based/ Non-Dairy
20

Products
15
Our data shows a clear sales 20

STRATEGIC PRICING The growing number of lactose-intolerant

FINANCIAL MANAGEMENT spike for seasonal and holiday
Implementing financial strategies to Refine pricing strategy to 10
15
and vegan consumers in the US creates a
flavors, highlighting a proven
boost profitability by 20% through enhance competitiveness and 10 prime opportunity for plant-based and
strategy to boost revenue during
expense monitoring and revenue optimize profit margins, aiming 5
5
alternative dairy frozen desserts.
for a 15% increase. these key periods.
tracking. 0 0
Item 1 Item 2 Item 3
Item 1 Item 2 Item 3
COST STRUCTURE, ITS CONCLUSIONS & INVESTMENT ANAYSIS
Variable Cost KEY METRICS
Category Fixed Cost
(Per Unit)
Ingredients - $1.50 $500 Annual
$25 Annual Cost Savings 20 Payback Period
Maintenance Cost
yrs
Labor $60,000 (management salary) $1
$12,000 (packaging machinery
Packaging $0.10 Category Calculation Result
maintenance)
$6,000 (estimated annual utility Current Annual Current annual production hours ×
Utilities $0.05 $500
expenses) Maintenance Cost Maintenance cost per hour
$72,000 (rent and administrative
Overheads 10% of revenue
expenses) Annual Maintenance (Current annual production hours × (1
Total (Fixed + Variable) $150,000 Varies Cost after Equipment - Reduced repair time)) × $475
Reconfiguration Maintenance cost per hour
CONCLUSIONS DRAWN
Current Annual Maintenance Cost -
Management salary fixed at $60,000
$15 yearly, $15 per unit for production staff.
Annual Cost Savings Annual Maintenance Cost after $25
Equipment Reconfiguration
Variable cost per unit is $1.50.
$1.5
55%
Initial Investment / Annual Cost 20 years
Payback Period
Packaging: Machinery maintenance
Savings
$0.10 fixed at $12,000 yearly, $0.10 per unit.5

$0.5 Utilities: Annual expenses $6,000,

NO Investment not financially viable,
variable cost $0.05 per unit. Being Payback Period as 20 yrs
10% Overheads fixed Fixed $72,000
yearly, marketing 10% of revenue
VEGAN YOGURTS LAUNCH AND BREAKEVEN ANALYSIS
Client wants to launch vegan yogurts. Assuming these can be priced at $4/cup and can be produced at $1.5/cup. If they want
to breakeven in one year, how many units should be sold?
VEGAN YOGURT INDUSTRY STATS
Description Value

Selling Price/cup $4 $2 Billion 18.9%

Market size value in CAGR of 18.9% from
Cost/cup $1.5 2020. 2020 to 2027

Profit/cup $2.5
MARKETING SOLUTIONS FOR VEGAN YOGURTS
Total Fixed Costs $500,000
Packaging innovation- Making our yogurts
Breakeven Units 200,000 cups
available in easy to consume packaging
KEY POINTS
Engagement with the Vegan Community -
Profit per cup amounts to Breakeven Units = $500,000 through social media, forums, and events.
$2.5 ($4 - $1.5) / $2.5

Utilize Targeted advertising on social media

To break even in one year, ABC Ltd. needs to sell 200,000 cups
platforms and health-focused websites to reach
of vegan yogurt.
vegan
CRITICAL EVALUATION OF ALTERNATIVES AND RECOMMENDATIONS
Summarizing the problem statement, the options that we had and our recommendation to the company.
SUMMARY OF PROBLEMS FACED RECOMMENDATIONS TO
AVAILABLE OPTIONS CLIENT AS PER FEASIBILITY
STAGNANT PROFITS Annual Profit : 3 Crores
FROM YOGURT SALE $19 Million Revenue
1.MARKET EXPANSION Product Diversification
Partnerships With Food through the introduction of
REPAIR INVESTMENT $0.5 MIllion investment 5% Reduction Services Industry. vegan yogurts, aligning with
ANALYSIS in repairs in repair time market dynamics to
potentially drive revenue
2.COST OPTIMIZATION growth.
DIVERSIFICATION $2 Billion 18.9% Optimize ingredient usage
WITH LAUNCH OF Market size value in CAGR of 18.9% from
VEGAN YOGURTS 2020 to 2027
and streamline operations
2020. Cost Optimization
is crucial for improving
3.MARKETING STRATEGIES profitability alongside the
BREAKEVEN POINT $4/CUP $1.5/CUP Strategy to boost revenue proposed product
ANALYSIS Selling Price Given Cost Price Given
during these peak seasons. diversification strategy.

OVERALL PROFITABILITY $22.35 million* 6.6%

Seasonal Marketing
AND EFFICIENCY Current year Revenue CAGR of 6.63%
4.PRODUCT DIVERSIFICATION Execute targeted promotional
Increase in lactose-intolerant campaigns and offers tailored
and vegan consumers. for peak seasons to boost sales
revenue
 RISK MITIGATION STRATEGIES
Identifying threats and analysing ways to mitigate the risks associated.

High Insignificant Minor Significant Major Severe RISKS/CHALLENGES MITIGATION

MARKET SATURATION
2
Almost FOCUS ON PRODUCT
Certain

4 1 AND INCREASED
DIFFERENTIATION
2 COMPETITION

Likely DEVELOP
SUPPLY CHAIN
2
Probability

DISRUPTIONS CONTINGENCY PLANS

Moderate
3 1 3 BRAND
CONFUSION
BUILD COSTUMER
LOAYALTY

Unlikely 5 REGULATORY
4 COMPLIANCE
COMPLEXITIES
ENSURE ROBUST
SYSTEMS

Rare

Low High
5 ECONOMIC
DOWNTURN
DIVERSIFIACTION,
VALUE-MARKETING
Impact
 Appendix - Forecasts and Calculations
MARKET VALUE OF FROZEN DESSERT MARKET

MARKET VALUE (in Million USD)

2019A 2020A 2021A 2022A 2023A 2024E 2025E 2026E
Market Value 70,531 74,058 78,217 82,629 87,289 92,212 97,413 102,907

PER CAPITA CONSUMPTION OF YOGURT

PER CAPITA CONSUMPTION (In Pounds)

2018A 2019A 2020A 2021A 2022A
Per Capita Consumption 13.6 13.4 13.6 14.3 13.9

TOTAL REVENUE ESTIMATE OF ABC LTD

Leveraging the concept of proportional reasoning, we can establish a relationship between the yogurt revenue and total revenue. Since the
yogurt vertical contributes 85% to the total revenue, we can represent this mathematically as:
Yogurt Revenue (Y) = 85% of Total Revenue (T)
Given: Y = $19 million

Total Revenue (T) = Yogurt Revenue (Y) / Percentage Contribution of Yogurt (%)

T = $19 million / 85%

T ≈ $22.35 million

Source - https://www.statista.com
Thank you!
DBS BrAINWARS 2024_Round 1 Submiss ...
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