MGMT 20143 Camperdown Dairy Business Model Analysis Report

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MGMT 20143 Think Big
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Table of Contents
Executive summary:........................................................................................................................3
I) Introduction:.................................................................................................................................4
II) Business model:..........................................................................................................................4
A. Building blocks:......................................................................................................................4
1. Customer segments:..........................................................................................................4
2. Key partners......................................................................................................................4
3. Value proportion...............................................................................................................5
4. Key activities.....................................................................................................................5
5. Channels............................................................................................................................5
6. Revenue streams...............................................................................................................5
7. Cost structure....................................................................................................................5
8. Key resources....................................................................................................................6
9. Customer relationships......................................................................................................6
B. Interrelationships.....................................................................................................................6
C. Critical Success Factors...........................................................................................................6
D. Downside risks........................................................................................................................6
E. Business Model Changes.........................................................................................................7
III) Conclusion.............................................................................................................................7
IV) Recommendations.................................................................................................................7
Appendix 1 – Camperdown Dairy Business Model Canvas...........................................................8
References:......................................................................................................................................9
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Executive summary:
In this report, there will be a discussion on Camperdown Dairy model of business with the help
of nine components of business model Canvas method to understand the main features which had
such immediate impact on the consumption of the milk products of Australia’s milk industry.
Camperdown dairy is a company which was started in 2014 and had its headquarters in
Australia. There are so many types of products which Camperdown Dairy manufactures related
to milk. There will be an explanation about how the company works and what type of types of
equipment it is using to produce their products. This company has inventory holdings and a
slower inventory cycle which have been accumulated by opening so many new stores in those
markets which have low growth and consisted of owners of the large scale who are drawing
capital.
Here are some recommendations which can be helpful in future growth:
 Move down to the customers to satisfy them.
 Understand the milk industry in a better way by the help of frequent reviews from the
people of Australia.
 Unknown customers should be targeted.
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I) Introduction:
Think Big is a type of unit which is generating, creating, developing and evaluating the ideas for
the innovation’s introduction and new viable ventures. Think Big has consisted of the discovery
design process helps in creating the enterprise which is dynamic and impactful. It will help in
understanding the concept of innovative business and design the business model of high
performance.
Camperdown dairy is situated in the south-west of Victoria, Australia. It was established in 2014
and its place keeps the balance with nature. It has the history of rich farming like paddocks
which have been dotted with black and white Friesians over the century.
There will be an explanation about how Camperdown operates so innovatively in Australia in
such a less time. It used a commercial, digital, and social network to grow their business which is
very useful for all the types of businesses.
II) Business model:
The business model of Camperdown shoes the rationale of how the company develops, delivers
and capture the market in the context of social, economic, cultural and many other types of
context (Ebner, et. al., 2014, January). These products are liked by the people of Australia and
they have the capability to capture the milk industry of Australia because they are very dedicated
towards their work and they are highly innovative, creative in nature and very good in the quality
of their milk products.
A. Building blocks:
There are nine building blocks which approach details Camperdown Dairy business model:
1. Customer segments: The main feature of Camperdown dairy is that they provide high-
quality milk to their customers who help them in precisely targeting their customers and
encourage them to buy their product without any second thought (Bocken, et. al., 2014).
2. Key partners: To increase the customer reach and grow themselves in a market they take
help of newspapers, televisions and third party websites which is used by them to
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increase their brand's awareness among the general public of Australia and to generate
the sales in the business. It also provides the services of providing the brochures to their
potential customer about their range of products and also takes orders on the phone. They
also take the product back if any defect is found in their products (Schaltegger, et. al.,
2012).
3. Value proportion: Camperdown make it easy for their customers to buy the product
without any hesitation of health issues and problems (Sashi, 2012). It has been successful
in cutting down the prices of their products by excluding the cost of middlemen who are
the main reason of increased price and promotes direct selling that is why they are
opening so many factory outlets in Australia to decrease their product’s prices.
4. Key activities: Camperdown dairy is a very strategic company which makes it different
from the other companies who are their competitors in the milk industry (DaSilva and
Trkman, 2014). They provide broachers to their customers by mailing them or by the help
of courier service. They also provide their products on the internet, so now customers do
not need to go to the shops to buy their products because they are available on the
internet. They also advertise for their products by mailing to their customers directly on
to their mail accounts individually. This type of promotion strategy is unique and
profitable for the long run because it does not have any cost related to this promotion
technique.
5. Channels: There are so many channels through which they deliver their products to their
customers. They deliver their products in Australia, China, Vietnam for which they have
a license. There is no need to open stores in every country because today they can sell
their products online with less investment and chances of high returns (Bohnsack, et. al.,
2014). It also increases the scope of a customer because they car is not concentrating on
one country which automatically leads to high customer reach and market establishment.
6. Revenue streams: The net profit of the Camperdown dairy company is approximately
$26920 in the year 2017. Most importantly the progress of company’s reposition from the
contact packers of another brand, to the owner of the brand of high quality has the well-
respected products in the market of their choice (Locatelli, et. al., 2014).
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7. Cost structure: The cost of the stocks of Camperdown dairy in the share market is off
40% sales price. The cost of selling and distribution are about 30% of the revenue of the
income while the cost of administration is around 20%.
8. Key resources: For advertisement directly with the mail are indispensable for the
infrastructure and capabilities of a list of mailing and matching the mail with the target
customers because it is very important to forward the mail to all the potential and target
customer for those countries where they are working or making their products available.
9. Customer relationships: The Camperdown dairy company is very good at creating a
relationship with their customers because they satisfy them fully with fulfilling their
demands. Mailing those catalogues and broachers for the promotion is the main strategy
to expand the business. They use this technique to target their potential customer and try
to convert them into actual customers (Bodenheimer, et. al., 2014).
B. Interrelationships: Camperdown dairy prints and mails approximately 25 million brochures
per year with 10 million prints and emails are forwarded to the potential and prospective buyers
which are identified from various sources. The overall sales turnover of the company is 85%.
The link between a house of mailing and partners should be of Camperdown dairy potential
customers and the segmentation of the customers is the foundation of the company. It has an
interrelationship with almost each and every aspect of the company due to which the company is
growing at a very high speed.
C. Critical Success Factors: The process of match-back is fundamentally linking the
characteristics of customers which help in describing a propensity to buy on the list of mailing,
which offering the presented and the purchase composition supports the result (Curtius, et. al.,
2012). The main and critical factor for success is that they achieve the target of making people
like their products. The online service of providing milk is a very good option which plays as a
supporting role in the growth of the company and it brings high profits to the company.
D. Downside risks: Between the five years of 2014 to 2019 Camperdown dairy has been the
potentially impeding the ability to increase the level of business and market reach which
eventually be the reason for high and growing investments in the business (Curtius, et. al., 2012).
This type of practices also helps the company to increase its stock level and customer over time.
The factors which are important to achieve these goals and wishes to go near to the standards
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which are very difficult but Camperdown dairy has made it to the profit and heights of success
with its hard work, will power and dedication.
E. Business Model Changes: the company will like to move to understand their buyers better
by identifying their nature and behaviour that leads to the conversion of the potential buyers into
actual buyers and build the loyalty in them towards their company. The milk industry is the type
of industry which is full of competition and demands. There are so many choices for the
customer which makes them confuse what to select (Hicks, 2017). Only the marketing and
promotion technique will differentiate their products from other products and convert the
customers into their permanent consumer without any question and second thoughts (World
Health Organization. 2015).
III) Conclusion: The preceding analysis is done on the basis of the public information and the
information collected by the Camperdown dairy company. Camperdown dairy has been the
amazing and wonderful in the application to the old practices of direct marketing which puts a
burden on the cost of the company and efficiencies of the internet. The future is made with risk
without risk there is no future.
IV) Recommendations: The Camperdown dairy-driven from the propensity done by the
segmentation of the customer model. It also helps in the better understanding irrespective of the
disruptive innovation of the zero concept leads to the consumption competition which applies to
Camperdown dairy.
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Appendix 1 – Camperdown Dairy Business Model Canvas
Customer
segments
1. Efficient
workers
Key resources
8. list of emails
and orders on the
website.
Value proposition
3. High-quality
product
Channels
5. Online store
Key partners
2. Partners are
the house of
mailing,
newspaper and
third party.
Key activities
4. Brochures and
product delivery
Customer
Relationship
9. Direct mail
Revenue streams
6. High profits
Cost structure
7. Stock 45% and sales35%
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sustainability: the role of business model innovation for corporate
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sustainability. International Journal of Innovation and Sustainable Development, 6(2),
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