SCHOOL OF BUSINESS MANAGEMENT

BUSINESS MODEL AND PLANNING

FINAL GROUP PROJECT

Vegan Milk Subscription Model

Submitted to:

Prof. Subhashish Majumdar

Submitted by: Group 2 BMP Class A

Vinamar Anand – F032

Shubham Bhutani – G038
Siddhant Daga – J005
Jotika Maheshwari – J016
Piyush Poddar – J033
Gayatri Panjwani - J049

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 OnlyVegan Milkworks
Introduction
“For the business plan we had conducted research to gain idea about the market share.

External Analysis:
1. Secondary Research  Various published/existing resources such as articles,
magazines, reports, white paper, etc. will be used to gather and understand data for the
following:
a. Customer
b. Competitors
c. Collaborators
d. Context
2. Primary Research 
a. Exploratory: Interviews will be conducted with people who consume vegan
milk, retail outlets who supply vegan milk (Ex Easyday, More, Etc), sales
managers of competitors (Sofit, etc). The leading questions will be designed
from the insights of secondary research.
b. Confirmatory: The insights gathered from exploratory research and secondary
research will be put down in a structured manner to survey the larger customer
base and verify the findings. Statistical analysis will be done on the survey
responses to deeply study the data.

Internal Analysis:
1. Tools such as SW, STP, 4P will be used to understand the company’s resources and
offerings and we will be able to customize our offering as per the market requirement
to make sure a strong launch in the market.

Financial Analysis:
1. Forecasting the sales and estimating the quantity to be produced to ensure minimum
turn around.
2. Building a reasonable pricing model and schemes to launch and penetrate into the
market, followed by SUBSCRIPTION PRICING MODEL.
3. Estimating the time period and volume of sales needed to reach the breakeven point
and quickly turn the company into a profitable venture.

Implementation and control:

Implementation:
1. Setting adequate time bound expectations

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 2. Allocation of resources
3. Monitoring result regularly

Control:
1. Setting the values of indicators: Sales volume, number of monthly subscriptions,
etc.
2. Determining the tolerance range; the maximum permissible deviation from the
expected value of indicator.
3. Measurement of values of indicator
4. Comparison of planned and actual value
5. Strategy formulation to eliminate deviation.

Business Opportunity
As of 2021, India is the largest producer and consumer of dairy products generated from
animals. Animal-derived dairy is also one of the largest agri-businesses in India accounting
for 4% share in the country’s economy. Animal based dairy industry in India has grown at a
CAGR of 12% in last 5 years. On the other hand, plant-based dairy industry though niche and
in nascent stage is growing and gaining acceptance all over the world. Milks like soy milk,
almond milk, oat milk are some of the examples of vegan milks which have seemed to make
promising inroads with the Indian consumers. The Vegan Food market size was valued at
$14.2 billion in 2018 and is expected to reach $31.4 billion by 2026, registering a CAGR of
10.5% from 2019 to 2026. Indian plant-based dairy industry is expected to grow at a CAGR
of 20.7% to be valued at $63.9 million by 2024.
Rise in the grocery market and various sales channel are making the plant-based milk easily
available, thereby driving market’s growth across India. When different types of Vegan milks
are considered, Soymilk emerged as market leader in 2018 and is expected to maintain
dominance owing to high awareness and easy availability. After soymilk, comes the Almond
milk, second most consumed vegan milk in 2018. Growth in this segment is mainly fuelled
by category entrants such as oat (sales grew by 71% 2017 to 2018), coconut (up 16%
between 2017-18) and almond variants (up 10% between 2017-18).
With the increased focus on improving dietary patterns, consumers preferring low-fat milk
beverages, Veganism is making in-roads in the Indian dairy industry. Vegan milk also works
as an alternative to people who are lactose intolerant. Also, environmentally-conscious
consumers would not opt for animal-based dairy owing to massive carbon footprint from
farming and animal rearing. Besides, consumers also connect ethical issues to deriving dairy
products from animals considering the alleged animal rights abuse. This can be substantiated
by the following data: 37% of 16-24s have reduced consumption of cow’s milk in the last 12
months for health reasons, and 16-24s were shown as the age group most likely (36%) to
agree that the dairy industry is detrimental for the environment

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With vegetarian population of India being around 30% many startups and MNCs are also
entering this space. Vegan restaurants and cafes have surged in number in Urban India as
many celebs have started adopting vegan milk as a part of their diet thereby influencing the
consumers at large. Thus, there seems to be a tremendous business opportunity in the plant-
based dairy industry which our company Only Vegan who would like to grab by providing
the market with sustainable, superior quality Vegan milks

Sales/ Marketing Model

We have made different segments for our product

Segmentation:
1. On the basis of Geographics

 COUNTRY - INDIA
 DENSITY - LOW, MEDIUM, HIGH
 LANGUAGE- HINDI, ENGLISH,
 Climate - hot, humid, cold

2. On the basis of Demographics

 AGE- 18-25, 25-40, 40+

 GENDER – All
 INCOME - Low, medium, high
 EDUCATION - Uneducated, Metric pass, Scholars
 SOCIAL STATUS - Family Life stage occupation

3. On the basis of Psychographics

We considered South and North India as two possible geographical segments.

Within that we Identified personas based on their age and their propensity to switch
to vegan milk or adopt it as a part of their lifestyle based on fitness reasons,
awareness about animal cruelty, lactose intolerance, skin concerns etc

Targeting:
Our target market will be PAN INDIA but we will focus on tier 1 cities at the time being. Our
products will also vary according to the geographical location of the city. For example, around the
coast and in southern India we will be focussing on coconut variant whereas in North India we will
focus on almond and oat variants. Our initial focus will be on tier 1 where we will launch all our
products, and in tier 2 and tier 3 cities we will launch the cheaper products for the time being to gain
customer base first. We also plan to target people who are focussed on staying fit and healthy and
people who are lactose intolerant by leveraging our product over dairy product.

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Pan India - With special focus on major product availability as per the city (south India -
Coconut, North India-Almond, oats, etc)
Tier Wise
 Tier 1 – Everything
 Tier 2 - Soya, Coconut, Almond
 Tier 3 - Only Soy & Coconut milk

Fitness Pro

 18 to 25 - Covering fitness routines

 25 to 40 - Covering lactose intolerance, health benefits

Positioning:
We position our brand as promoting a new healthy lifestyle which does not harm any animals and can
cater to the needs of the people with the help of a dynamic subscription model. We offer products in
all ranges and in different packages. We aim to be perceived as a healthy alternative and not a
premium product.

Product Features

This is how our product will be

1. Varieties:

 Soya

 Coconut

 Almond

 Oats

2. Flavors:

 Sweetened
 Unsweetened
 Chocolate
 Vanilla
 Mango
 Kesar

3. Packaging:

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  200 ml Tetrapack
 500 ml Tetrapack
 1 l Tetrapack

4. Pricing:

The Indian dairy alternative market stood at $20.9 million in 2018 and is projected to
grow at a CAGR of 20.7% to reach $63.9 million by 2024, on account of increasing
participation of the young population in sports and fitness activities and growing
consumer inclination towards low-fat milk beverages

Cost of Production and Price Determination of Sales:

5. Place

We plan to sell our products from the following channels

 Website
 Kirana Stores

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  Aggregators

Subscription Model

It's a prepaid model with the price limits given as in the table. The buyer can choose the
variety and the type of subscription he/she wants with options like: Daily, Alternate days,
biweekly etc.

6. Promotion

 Basic Sugar test for during the launch phase as a goodwill for consumers.
Making them aware about their lactose intolerance (if any)
 Contacting high reach fitness influencers like Gaurav Taneja to promote
our product. Incentivizing the audience via referral codes. Making them
aware about their lactose intolerance (if any)
 Run the #goFitGoVegan challenge on Instagram and Twitter, where
people can share their fitness stories and tag us. We will reshare the top
10 most liked stories and also give them rewards.
 For every purchase made, we will contribute towards eradicating animal
cruelty. Posts on social media depicting the story of Vegan milk and
animal cruelty. This will give an emotional touch.

OPERATIONAL MODEL
1. Customer Value
 Our primary value proposition is an alternative milk product, ideal for people
with lactose intolerance, vegans and the health conscious consumers. Our aim is
to take care of your nutrition, digestion, as well as convenience to buy vegan milk
on a subscription basis. We deliver vegan milk at your doorstep, which is
produced without any harm to the environment.
 We cater to all age groups and have something for everyone. We aim to provide
an affordable milk alternative with nutritious value to all the Indians. We promise

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 ‘Milk for all’.

2. Business Value

We harness the large FMCG market potential, especially the one where the customer
needs can be satisfied through a healthier alternative to milk by offering vegan milk
products. However, we also aim to serve as a strategic partner with other companies
where we can supply our vegan milk as raw materials for processed non-dairy
products. Through a flexible subscription model where customers can cancel/signup
at their own convenience, our business model has predictable cash flows from direct
sale of vegan milk products. We also provide the option of making a lump sum
payment where our customers enjoy additional discounts on advance payments, again
helping us save on capital costs by promising a predictable cash flow through sales
revenues.

3. Structure Of The Distribution Channel

Overview of the distribution channel-

As the bottles are manufactured in-house, minimum suppliers are needed. After the
manufacturing in in-house plants, the stock is then sent to distributors in different
parts of the country. The distributor, then sends these bottles to another warehouse or
the retailers. Finally, the product reaches the customers.

Mainly four types of distribution channels Will be used by OnlyVegen:

 Direct Channel (Manufacturer to customer)- it provides differentiation and

value addition with respect to its competitors, reduced intermediaries lead to
better margins

   Indirect Channel (two-level channel); Manufacturer to distributor to

retailer to customer)- helps in reduces overhead of sales representatives, better
control and information flow, efficient operations, higher Investment

 Indirect Channel (one-level channel; Manufacturer to retailer to

customer)- helps in delivery to stores, provides the same benefits of two-
level channel though on a lesser scale and lower investment is required

 Franchisee (In the near future) operates in regions where OnlyVegen

doesn’t have a manufacturing plant, franchise owns the distribution network,
the quality norms for the product are set by OnlyVegen, provides broader
reach with lesser resources, minimizes taxes

BUSINESS MODEL CANVAS:

1. Customer Segments

At OnlyVegan, we promise a milk-for-all approach.

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  For the health conscious, we provide a nutritional milk alternative.
 For those who identify themselves as vegans, we provide a vegan milk
which involves no cruelty to animals.
 For people with health concerns like cholesterol and lactose
intolerance, we provide a non-dairy yet healthy milk alternative.
 We provide a dynamic subscription model for the tech-savvy and genZ.
 Varieties such as flavoured milk and sweetened editions provide a
healthy beverage alternative to school-going children.

2. Customer Segments:

 When we talk business, we mean trust, nutrition, and convenience for

our customers.
 We cater to all age groups and have something for everyone.
 We aim to provide an affordable milk alternative with nutritious value
to all the Indians.

3. Channels:

 Order directly through app and enjoy additional discounts.

 Also available at all the leading supermarkets.
 Don’t have a debit card? Sign-up coupons coming soon. Buy coupons
on local retail stores and activate your subscription online by scanning
the QR code.

4. Revenue Streams

 Our prime revenue stream is the sale of vegan milk products.

However, we are open to strategic alliances with other companies
where we can supply our vegan milk as raw materials for processed
non-dairy products.
 We offer a flexible subscription model where you can cancel/signup at
your own convenience.
 We also provide the option of making a lumpsum payment where our
customers enjoy additional discounts on advance payments, also
helping us plan our cash flows.

5. Value Proposition:

 We deliver an alternative milk product, ideal for people with lactose

intolerance, vegans and the health conscious consumers. We take care of
your nutrition, digestion, as well as convenience to buy vegan milk on a
subscription basis, delivered at your doorstep, without harming the
environment.

CHARACTERISTICS:

• Nutrition
• Convenience

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• Eco Friendly
• Healthy
• Milk for all

Basically, characteristics that are best of traditional milk, without the worst of
the traditional milk.

6. Cost Structure

• Ingredients/Packaging inputs
• Production facility
• Distribution Process
• Staff Salaries
• Marketing/Branding
• Website Development
• Regulatory and compliances

7. Key Partners

Partners:

• Distributors
• Retailers
• Vendors, Trade shows etc. that service physical retailers
• Website developer for D2C Model.

Suppliers:

• Local Farmers of soy and other product materials

• Product Manufacturers
• Packaging Requirements

8. Key Activities

• Product Development
• Partnership with quality suppliers
• Manufacturing/Distribution
• Branding: Develop and market a brand that is consistent with a
growing “Healthy culture”
• Employment: Local Community

9. Key Resources

• Raw Ingredients for production.

• Production facility
• Start-up money
• Brand Patent

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 • Partner and Retail Network

Financials:
While formulating the financials we started with the selling price. The selling price was
found out by studying the market and the competitors. There after upon more research we
found out that in 1 day there are approximately 20000 litres of vegan milk that is produced by
an average vegan milk competitor. So, we distributed the 20000 litres into 3 segments
according to the demand that we estimated in the primary research phase. We kept the profit
margin at 30% and thereafter found out the cost. Since there were not much research to get
the cost of the product, we went in this way. Thereafter we found out the cost of the different
variants yearly and found the breakeven sales that are needed for no profit no loss situation.
We also did research to find out the average CAGR of the vegan market and tried to project
the 5-year sales projection. We found out that the CAGR was 15% across Europe and US, but
to be conservative we took 10% and projected the sales.

1. Total Cost –

The Total cost of our products are as follows of

 200 ml tetra packet - Rs 268275000

 500 ml tetra packet - Rs 357700000
 1 L tetra packet - Rs 132860000

Total Cost of Production and Sales

5 Year Projection Plan

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 2. Break Even Sales-

We also went ahead and tried to find out the breakeven sales for the company and
found that is was-

 200 ml tetra packet - Rs 1411974

 500 ml tetra packet - Rs 1882632
 1 L tetra packet - Rs 699263

Organisational structure
The organisational structure of Only Vegan will be based on a cross – cultured approach,
though highly job specialised thus having the mix of both the worlds. There will be an open-
door policy at all the hierarchal levels so that employees can effectively interact with the
management. With respect to behaviour formalisation, the company will be moderately
formalised thereby meaning that the employees will have the autonomy for certain parts of
the business and won’t be guided by rules and processes. Here the authority will flow from
top to bottom level and with respect to decentralisation, the company will be both vertically
and horizontally decentralised which means that the managers at all levels will have the
authority to take decisions pertaining to their department except for the processes for which
the company will be having a Standard Operating Procedure (SOP) in place

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 CEO

Head of Sales Head of Finance

HR Manager
& Marketing Operations Controller

Procurement
Marketing Supply Chain
Sales Manager and Planning
Manager Manager
Manager

This will be the hierarchal structure of Only Vegan, where the authority will flow from CEO
at the top to the managers and administrative staff at the bottom. This hierarchal structure is
different from that of dairy industry by the way that there will be no milkers and feeders
involved in the organisation. It will be the job of Procurement and Planning manager to look
after the requirements of plants needed by the company for the formation of Vegan Milk of
superior quality

People:
People form an integral part of our organisation. The team will be formed by the recruiting
the management trainees from well-known B-Schools in India. Training modules will be
developed for the employees since the Vegan Industry in India is still in a very nascent stage
which makes it inevitable to train employees at every level right from procurement to
distribution stage. Performance of employees will be evaluated on quarterly basis. High
performing employees every quarter will be given recognition and other monetary/non-
monetary incentives. Only Vegan will also work towards the development of High-
Performing employees in order to retain the talented individuals in its organisation.

Sales Forecast Assumptions

The primary reason for people to choose Vegan milk was fitness and skin related but
animal cruelty was the most important factor to sensitise people who don’t consume.
People preferred chocolate flavour but wanted to still have the benefits of unflavoured vegan
milk, main concern being high sugar content. Price and availability were the major

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concerns and more flexibility in choosing the subscription model and package size
was suggested by the respondents.

Market
The Vegan Food market size was valued at $14.2 billion in 2018 and is expected to reach
$31.4 billion by 2026, registering a CAGR of 10.5% from 2019 to 2026.
Growth
Growth is largely fuelled by category entrants such as oat (sales grew by 71% 2017 to 2018),
coconut (up 16% between 2017-18) and almond variants (up 10% between 2017-18).
Motivation
37% of 16-24s have reduced consumption of cow’s milk in the last 12 months for health
reasons, and 16-24s were shown as the age group most likely (36%) to agree that the dairy
industry is detrimental for the environment.
Current Trend
Consumption of cow milk dropped from 79% in 2018 to 73% for 16-24-year-olds between
2017 – 2018. Usage of cow milk in the UK is now concentrated amongst older consumers,
with 92% of over-45’s still consuming dairy options.
Usage
use of non-dairy milks is shown to be limited for cooking and usage for hot drinks. Just 25%
of plant-based milk consumers use these products in cooking.”

REFERENCES
 https://ezproxy.svkm.ac.in:2113/stable/10.1163/j.ctvjhzq0f.11?
Search=yes&resultItemClick=true&searchText=plant+based+milk&searchUri=%2Faction
%2FdoBasicSearch%3FQuery%3Dplant%2Bbased%2Bmilk%26acc%3Don%26wc%3Don
%26fc%3Doff%26group%3Dnone&ab_segments=0%2Fbasic_SYC-5187_SYC-
5188%2Ftest&refreqid=fastly-default
%3Afbc9ca683f5d6fd4ff90993b1c8d9f31&seq=1#metadata_info_tab_contents

 https://ezproxy.svkm.ac.in:2099/docview/2376739304/921D0EF2FEA94F60PQ/6?
accountid=32277

 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5122229/#:~:text=Results,weight%20loss
%20during%20energy%20restriction.

 https://ezproxy.svkm.ac.in:2203/ehost/detail/detail?vid=0&sid=a30f96e6-cc7a-4978-b9c4-
0b7651fb054f%40sdc-v-sessmgr01&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d
%3d#AN=bizwire.bw89175564&db=bwh

 https://www.researchandmarkets.com/reports/3842110/india-flavoured-milk-market-outlook-
2022

 https://medium.com/@kvivek_43669/the-3-big-challenges-for-the-milk-delivery-services-
model-in-india-52045687d4b1

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