Modhani Yoghurt: Business Growth and Sustainability

Desklib provides solved assignments and past papers to help students succeed.

Project 1

About Modhani Yoghurt
Modhani Yoghurt is a Canadian company which is owned by Barinder Singh Badwal. It was
incorporated in the year 2015. The main motive behind the company is to produce yoghurt for
the working people. It provides all the nutrition that maintains the health of the person. Modhani
yoghurt made its debut in the year 2017 with their first yoghurt named “Herb In & Spiced Up”.
The yoghurt introduced Canadians with the amazing benefits of the spices. The yoghurt made in
Modhani adds a special flavour of spice and makes it worth to taste. They also produce 16 other
products other than yoghurt. All the products are made available in the grocery stores and shops.
The main ingredient of Modhani is turmeric. Adding a flavour and touch of turmeric in every
product they produce makes it unique (Modhani, 2019).
As this company is just stared, it deals with the small-scale markets. Modhani has gained huge
popularity in the small-scale with their products, especially yoghurt. Modhani takes review from
the customers about their products. They always get a positive reaction. Customers are very
happy with the yoghurt and other products which Modhani is producing.There are so many
opportunities for Modhani to establish them in the new market(Modhani, 2019).
The opportunities are-
Strong Customer Base- When a company enters in a new market, it is important to have a
strong customer base. The customer’s reviews and thoughts can say a lot about you r product.
Once the customer buys a product, the review will be given two more and the cycle continues.
Modhani has a strong customer base because of the unique yoghurt they are producing.
Therefore, it is a great opportunity for Modhani to expand its business. They have a full support
of customers which will help them grow in the business.
Uniqueness of the product- The product which Modhani is famous for is its uniqueness. This
uniqueness creates a wish in the minds of the people to buy and use the product. This is also an
opportunity to gain popularity in the new market. Once the product is introduced in a new
market, there will be a curiosity in the minds of the people. The positive reviews and

recommendations will influence the people to buy the product. Nobody has expected turmeric in
yoghurt. This curiosity will encourage them to buy as well.
The above mentioned opportunities will create a positive contribution in the growth of the
business. The strong base of the customers will help Modhani to introduce their product in the
new market. An organizations main aim is to have a strong customer base. Modhani has a strong
customer base because of the uniqueness of their product. Therefore, more people will buy the
product if it has a strong customer base. Also, the uniqueness of the product will provoke the
consumers to try the product once.
The mission and vision of Modhani is to produce yoghurt so that the busy and working people
can get the proper nutrition they want. Therefore, the opportunities which will help in the entry
in the new market are completely compatible with mission and vision. As the company wants to
increase the customers, it is important to have a strong customer base. Once a strong customer
base is achieved, then the mission will be achieved as well. Also, the uniqueness of the product
will excite the buyers to taste the product.
Modhani Yoghurt competes against the small-scale companies. This is because it was started in
the year 2015. Newly owned company needs time to know the market and their trends. Also, the
customers slowly increase in the market. Modhani has a built a strong customer base in the
small-scale market. The customers are in love with the products and purchase very often.
Therefore, if Modhani enters in a new business, strong customer base will excite other buyers to
use the product. Also, having a strong customer base will help the company to confidentially
enter into a new market. The customers will increase when the business will expand. The
situation will be far better than dealing in small-scale industries.
When a company enters into a new market, lots and lots of funds are required. As the entrance
don’t guarantee the success, therefore, it is important to plan a budget. While entering the
market, whether the product is having a strong base, it may not work.There are so many small-
scale organizations which have a strong customer base but still don’t get popular in the large-
scale market. Also, there are times where government changes the policies and guidelines
regarding the large-scale or small-scale market. This acts as a barrier for the entry in the market.

Special planning should be done for maintaining the budget and working according to the
change.
Return of Investment is defines as the money invested by the company to increase the sales of
the product, goods and services. While entering the market, it is obvious that a company should
have a proper budget planning. There can be a scenario where instead of having a proper and
strong customer base, products don’t work in the new market. The money invested will not be
recovered and company can be in a loss. Therefore, the more advertising should be done about
the new product. Also, discounts and offers should be given that can attract the customers. This
can help in the recovery of all the investment. Proper investment won’t be there, but still it can
recover some amounts.
Changes needed to current operations:
Although Modhani Yoghurt is successfully operating and accordingly business operations and
has acquired the dominant position in the sector to which it belongs but still there is a greater
need to focus on formulating new strategies along with revising the existing strategies. Before
discussing this fact in detail, it is important and imperative to understand the fact that the
concerned business entity (Modhani Yoghurt) has gained the competitive advantage due to its
successful business policies that have incorporated in its organizational structure. Obviously, it is
not possible to formulate and accordingly apply successful business policies in a smaller duration
of time. A lot of time is needed to identify and determine the most beneficial, profitable and at
same time economical policies.
The company has been able to achieve success and associated goodwill as a result of its
organizational structure which has been developed over a long duration of time. However, mere
achieving dominant position is not required or necessary. There is a greater need to maintain
such dominancy. Only then it will be able to retain its existing customer base. Also, this will be
required to give a cut throat competition to its rival firms as well as to target the niche market, if
any.

For maintaining such dominancy, it is expected from the Modhani Yoghurt to continuously
monitor the business environment as well as the factors affecting or influencing the business
environment. This will indirectly help to compare the applied business policies by the concerned
business entity. Thus, it can be said that the final decision can be taken as to whether if there is
any requirement to incorporate any change in the existing policies so as to cope with the changes
taking place in the current dynamic environment.
Changes needed to maintain the current quality of customer service
Taste and preference of customers keeps on changing and thus it is expected from every business
entity to continuously monitor the needs and expectations of the customer base. Only those
organization succeed who successfully satisfy the customers at a large.
Keeping this fact into consideration, Modhani Yoghurt should also bring diversity in the product
range of its products in which it currently deals. In other words, the top level management of
Modhani Yoghurt can introduce new related products belonging to the same sector in which it
currently deals. This is because of the fact that, as per the diminishing law of utility after a
certain duration of time customer used to get bored from a same product. Thus, even there is no
change in any of the factor including price, consumption of product for a long duration may need
find fascinating or interesting to a customer or an end user.

References
Modhani, (2019).About Modhani.[Online].Modhani.Available at- http://modhani.ca/why-
modhani [Accessed on 3rd August, 2019].