Kineer Empowerment for Growth
In a case study presentation for the John Molson MBA International Case Competition 2022, a team offers recommendations to help Kineer reach 300M INR sales by 2023 while empowering the transgender community. The focus is on business model refinement, storytelling, and community empowerment. The team evaluates the current situation, provides analysis, and suggests strategies aligned with Kineer's identity and purpose. Recommendations include promoting community creation, enhancing education and support, and adopting a lean promotional plan.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
January 2022 JOHN MOLSON MBA International Case Competition 2022 Kineer Quenching India s Social Thirst PBS Consulting Sarah Horacek, Lu s Martins, Tiago Ling, Alex Ghinescu Presenting to Mr. Manish Jain, Chief Executive Officer of Kineer
Why are we here today? How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community? Challenge Key Issues Business model Promotion & storytelling Empowerment Recomen- dations Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan 1
Our view of your current situation The challenge in detail Alternatives and Recommendations AGENDA Implementation Plan Financials and Risks Summary 2
What is your purpose? To build a brand that employs only transgender people The founder are associated to the LGBTQ+ movement Brand founders are associated with public causes related to the LGBTQ+ community. Whatever path the company takes, its fundamentals of empowerment of the LGBTQ+ community must be taken into consideration. All business decisions must be aligned with this identity. 4 Analysis Recommendations Implementation Plan Financials & Risks
Where you are today Product Product Price Price Place Promotion Main channel in social media is through Tripathi s social media Outdoor media billboard in high visible locations and local FM radio stations Still water. 250 ml, 500 ml, 1l and 20l sizes. College festivals, social media live activities. Events with partners Currently priced at the market s median price 5 Analysis Recommendations Implementation Plan Financials & Risks
and how is that working for you? Product Product Price Price Place Promotion Main channel in social media is through Tripathi s social media Outdoor media billboard in high visible locations and local FM radio stations Still water. 250 ml, 500 ml, 1l and 20l sizes. College festivals, social media live activities. Events with partners Currently priced at the market s median price The price is aligned with the competition, positioned as median price and it can be hard to lower it because it may bring a price war. The promotion strategy has been working to gain brand awareness, but it can be adjusted to improve sales. The placement of the brand is aligned with its message, but it can also be improved to attract a wider range of people. The current product offering is aligned with the mainly consumed products in the market. 6 Analysis Recommendations Implementation Plan Financials & Risks
Who is your customer? Around 100 B2B customers currently (main customers being Vistara Airlines, The LaLit, Barclays Bank, among others). Educational Institutions. Awareness among younger generations is higher The company is building a strong network of B2B partners, but there is growth opportunity in the expansion to B2C customers who are aware of the brand. 7 Analysis Recommendations Implementation Plan Financials & Risks
How does the market look like? Competition is wide there are around 150 domestic brands, and the 10 major players own 30~35% of the market Sold in 4 main types of SKUs the ones currently being offered by Kineer Growing market 20.75% CAGR from 2018 to 2023 B2B B2C Sales largely handled by sales teams directly employed by the teams. Main retailers for B2C are street vendors, mom-and- pop stores, department stores and supermarkets. Traditional B2C players may be affected by the new goods and services tax (GST). Margins are thin because there are a lot of intermediary costs in the model. Lower supply chain costs make it more attractive to small companies, but are more restrained to grow 8 Analysis Recommendations Implementation Plan Financials & Risks
Understanding the supply chain Captive water source Bottling plant Warehouse Distributor Retailer Customer B2C B2C with a partner B2B Although there is a huge market opportunity, to grow in the B2C area alone may be too costly for such a young company. 9 Analysis Recommendations Implementation Plan Financials & Risks
What is currently moving the Bottled water market in India? 2018 court case moving away from the caste system Bottled water market is growing at a fast pace CAGR of 20.75% from 2018 to 2023; associated to the growth of disposable income from the families in India Younger generations tend to be more aware of the issues concerning the LGBTQ+ community. Current trends are aligned with the Brand s value proposition and being in a growing market leverages the opportunities for Kinner to grow. 10 Analysis Recommendations Implementation Plan Financials & Risks
Summing up Strong brand. Founders are strong personalities in the LGBTQ+ and have strong business background. Low reach. No footprint in the B2C market. Strengths Weaknesses Social awakening of the general public for the LGBTQ+ community. Company is operating in a growing market. COVID-19 pandemic uncertainty may be a threat, mainly for the B2B market. Threats Opportunities 11 Analysis Recommendations Implementation Plan Financials & Risks
How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community?
Tackling Kineers challenge How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community? Challenge Key Issues Business model Promotion & storytelling Empowerment Recomen- dations Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan Use of QR code to build awareness and facilitate the creation of local support and awareness groups B2B employment opportunities B2B: High head count businesses that support the cause B2C: Southern India focus, need for distributor Label redesign QR Code Digital Marketing Guerilla marketing 13
Which business channel should be targeted? CRITERIA Scale 1-5, least to most desirable Control over product Fit with company culture Potential ROI Investment needed Complexity TOTAL B2B ALTERNATIVES B2C B2C with a partner 14 Analysis Recommendations Implementation Plan Financials & Risks
Which business channel should be targeted? CRITERIA Scale 1-5, least to most desirable Control over product Fit with company culture Potential ROI Investment needed Complexity TOTAL B2B 5 4 5 4 5 23 ALTERNATIVES B2C 4 1 5 1 1 12 B2C with a partner 3 3 3 5 3 17 You should continue to focus on the B2B segment with the goal to explore the B2C segment with a strategic partner. We suggest a 80-20 approach, meaning the main focus should continue to be the B2B (80% of business) but you should start to get traction in the B2C market (20% of the business). 15 Analysis Recommendations Implementation Plan Financials & Risks
Where should you aim your B2C efforts? CRITERIA Scale 1-5, least to most desirable Potential market size (population) Fit with company culture Social status of the region Potential partners TOTAL Complexity ALTERNATIVES North India 5 2 3 1 2 South India 1 4 5 5 5 16 Analysis Recommendations Implementation Plan Financials & Risks
Where should you aim your B2C efforts? CRITERIA Scale 1-5, least to most desirable Potential market size (population) Fit with company culture Social status of the region Potential partners TOTAL Complexity ALTERNATIVES North India 4 1 2 5 2 14 South India 2 4 5 3 5 19 17 Analysis Recommendations Implementation Plan Financials & Risks
Tackling Kineers challenge How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community? Challenge Key Issues Business model Promotion & storytelling Empowerment Recomen- dations Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan Use of QR code to build awareness and facilitate the creation of local support and awareness groups B2B employment opportunities B2B: High head count businesses that support the cause B2C: Southern India focus, need for distributor Label redesign QR Code Digital Marketing Guerilla marketing 18
B2B is an ideal channel for early and longer-term growth Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan What? An 80% focus on B2B Easier market penetration, higher margins, ability to control partners and placement, better story telling through supportive placement, B2B has the ability to reach 300M INR Why? B2B B2C Inside sales team to reach events, festivals, retreats, art & cultural outlets Outside sales via tradeshows: hospitality, education, tech Focus on high head count, luxury or youth focused businesses known to support transgender or LGBTQ issues Specific verticals: luxury hospitality, higher education, IT sector, yoga & meditation retreats, events & festivals, art & cultural outlets How? B2B is the best way to grow your business in the short term, has higher margins that will grow the brand faster, and it is a stable driver for long term growth 19 Analysis Recommendations Implementation Plan Financials & Risks
B2C will allow Kineer to grow its brand & transgender awareness Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan What? 20% focus on B2C to increase awareness and grow the brand This will allow greater reach of the product which will build broader awareness and community opportunities for transgender and LGBTQ individuals. The market size allows for substantial long term growth. Desire for products with purpose creates the perfect timing to enter the B2C market. Why? B2B B2C Find distribution partner with strong presence in Southern India, which is more liberal than Northern India and home to more relevant partners and events Possible partner to vet: Kent Ro Systems (located in Goa and their area sales manager is transgender) Begin in the Goa region: this is the most liberal area of India and has many festivals and events that can be used to promote the product Pursue greater distribution within Southern India, which is more liberal and is home to many of the B2B industries being pursued; such as, IT Tech, luxury hospitality, and retreats/events How? The timing is right to enter the B2C market younger customers are seeking purpose driven brands, but this should be done in a targeted way to stay true to the ethos of the brand and to control costs 20 Analysis Recommendations Implementation Plan Financials & Risks
Product differentiation will distinguish Kineer from its competitors Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan What? Label redesign, QR Code, Guerilla Marketing, Digital, and Limited Traditional Media Lean promotional tools must be used to maximize the available budget, developing the highest level of awareness and support for the cause while driving revenue Why? Label Redesign/QR Digital and Guerilla Marketing Label design: the primary promotional element should be your label. We recommend a redesign that incorporated either the transgender flag or the LGBTQ flag. These can be market tested for higher sales. QR Code: central to the awareness and community campaign is a prominent QR code incorporated into the label. This will bring customers to your landing page from where they can access different resources: Community Connect, Safe Spaces, Kineer social media channels, educational tools, ability to donate, and other ways to support the community How? The cause of transgender and LGBTQ equality should be easy assume from the label and used to drive support. It should incorporate the storytelling aspects of Inclusion, Dignity, and Self-reliance for all 21 Analysis Recommendations Implementation Plan Financials & Risks
A lean promotional budget requires careful expenditure Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan What? Label redesign, QR Code, Guerilla Marketing, Digital, and Limited Traditional Media Lean promotional tools must be used to maximize the available budget, developing the highest level of awareness and support for the cause while driving revenue Why? Label Redesign/QR Digital and Guerilla Marketing Make your budget go further with guerilla marketing tactics. A primary aspect of this strategy will be passing out free bottled water at relevant, select events; such as, music and equality festivals beginning in Goa and then broadening out to Southern India, and next urban centers as distribution increases Continue with social media marketing strategy: focusing on TikTok, Instagram, and Meta Use these channels to share transgender stories and build awareness (including LGBTQ), lead with purpose Broaden focus to one of inclusion, dignity, and self-reliance for all How? Digital and guerrilla marketing techniques will make your budget go further and maximize awareness 22 Analysis Recommendations Implementation Plan Financials & Risks
Empowering the LGBTQ+ community will validate Kineers core beliefs Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan Facilitate the creation of local community groups, increase overall awareness and education, provide support for transgender and LGBTQ+ community What? This is at the heart of Kineer s mission Why? QR Code: use the QR code landing page to become a community builder and connector Find local community leaders and assist them in building their communities via connecting them with LGBTQ community members and those who support the community Facilitate local communities that provide safe spaces, support & awareness groups, education, and employment opportunities Donations: seek donations through the landing page that can be distributed to local community groups and greater awareness campaigns Work with B2B partners to identify which are supportive of transgender and LQBTQ communities, work with these partners to identify available job opportunities. Share companies that are supportive of hiring within community. How? Be a community connector to create greater opportunities and awareness in the transgender and LGBTQ communities, 23 Analysis Recommendations Implementation Plan Financials & Risks
Implementation Plan Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan 2022 2023 Action Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Business Model B2B Set up a sales team of 5 inside + 2 outside sales reps Set up counters at events, festivals, retreats, art & cultural outlets Outside sales reps focus on hospitality, education and tech trade shows B2C Approach and vet potential distribution partners (eg. Kent Ro Systems, Naik Traders) Negotiate a distributuion deal Begin Kineer distribution through partner 25 Analysis Recommendations Implementation Plan Financials & Risks
Implementation Plan Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan 2022 2023 Action Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Promotional Plan Vet and hire a graphic designer company to redesign the label Kineer Label redesign Redesigned label Q&A Redesigned label launch Advertising campaigns on Facebook, Instragram, TikTok Guerilla marketing campaign Tap into transgender influencers social networks Maintain Traditional marketing adverting campaign (outdoors, radio) 26 Analysis Recommendations Implementation Plan Financials & Risks
Implementation Plan Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan 2022 2023 Action Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 LGBTQ+ Empowerment Approach LGBTQ+ community leaders Help LGBTQ+ leaders build a platform to support other community members Promote online safe spaces Facilitate donations to LGBTQ+ movements 27 Analysis Recommendations Implementation Plan Financials & Risks
Financial Assumptions Assumptions (INR) Equity Ke 20,000,000 20% 2020 Revenue 2023 Revenue Goal 85,100,000 300,000,000 B2B Margin B2C Margin 250ml Price (Handouts) Average B2C Contract Size (2020) Market CAGR 15% 5% 5 851,000 20.75% 29 Analysis Recommendations Implementation Plan Financials & Risks
Growing your revenue Cash Flows (INR) Item Base B2BClients (2020 + growth) New B2B Clients Total B2B Clients 2022 100 40 140 2023 100 110 210 Base Revenue (B2B) Additional B2B Revenue Additional B2C Revenue Total Revenue 124,080,587 34,040,000 39,530,147 197,650,734 149,827,309 93,610,000 60,859,327 304,296,636 Base Operating Expenses (B2B) Additional Operating Expenses (B2B) Additional Operating Expenses (B2C) -105,468,499 -28,934,000 -37,553,639 -127,353,212 -79,568,500 -57,816,361 Label Redesign & Graphics Website Update Website Maintenance Event Sponsorship Handouts (50,000 250ml bottles) Tradeshow Booths Inside Sales Team (5x480K) Outside Sales Team (2x480K) Total Expenses -3,000,000 -1,000,000 -100,000 -1,500,000 -250,000 -1,000,000 -2,400,000 -960,000 -270,948,073 -1,500,000 -250,000 -1,000,000 -2,400,000 -960,000 -182,066,138 Operating Profit 15,584,595 33,348,563 Free Cash Flow NPV -3,027,493 6,034,563 10,874,466 30 Analysis Recommendations Implementation Plan Financials & Risks
Risk Assessment Risk Mitigation Risk Matrix VERY HIGH Break more aggressively into B2C market to support revenue stream if offices are closed and travel stalls. 1 COVID-19 uncertainty HIGH PROBABILITY Reach out to network including Ratan Tata who is a promoter to find suitable LGBTQ+ partners MEDIUM 1 Unable to find distribution partner 2 3 LOW Screen potential partners in safe space creation with great scrutiny and as closely as any other partner (distributors) 2 VERY LOW Brand image exposed in physical safe spaces 3 VERY HIGH VERY LOW LOW MEDIUM IMPACT HIGH 31 Analysis Recommendations Implementation Plan Financials & Risks
Summary How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community? Challenge Key Issues Business model Promotion & storytelling Empowerment Recomen- dations Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan Use of QR code to build awareness and facilitate the creation of local support and awareness groups B2B employment opportunities B2B: High head count businesses that support the cause B2C: Southern India focus, need for distributor Label redesign QR Code Digital Marketing Guerilla marketing 32
Thank You! Q&A
Summary How can Kineer reach 300M INR sales by 2023 while maintaining profitability and empowering the transgender community? Challenge Key Issues Business model Promotion & storytelling Empowerment Recomen- dations Community creation, education & support B2B (80%) & B2C (20%) Lean Promotional Plan Use of QR code to build awareness and facilitate the creation of local support and awareness groups B2B employment opportunities B2B: High head count businesses that support the cause B2C: Southern India focus, need for distributor Label redesign QR Code Digital Marketing Guerilla marketing 34
Appendix Appendix: Selected Contracts Contract Cases Bottles Sales Price per Case Price per Bottle Suri (500ml) 60,000 720,000 7,200,000 120 10 Vistara (250ml) 22,320 267,840 1,339,200 60 5 35 Analysis Recommendations Implementation Plan Financials & Risks
