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Circular Return Strategies for the Indian Dairy Market

Bjellerup, Sophie and Kraft, Linnéa (2015) MIO920
Production Management
Abstract
Background Companies producing premium products with high quality and
long product life can experience challenges when trying to
penetrate price-sensitive customer segments on emerging markets
due to a high product price. One way to achieve growth in these
segments is to introduce new innovative business models. From
the theory of circular economy, a concept combining sustainable
and economical growth, innovative circular business models exist.
The question has been raised if these business models can be used
to help durable premium products to reach price-sensitive
customers on emerging markets.

Purpose The purpose of the project is to develop a business model aiming
to increase the case company’s market share of... (More)
Background Companies producing premium products with high quality and
long product life can experience challenges when trying to
penetrate price-sensitive customer segments on emerging markets
due to a high product price. One way to achieve growth in these
segments is to introduce new innovative business models. From
the theory of circular economy, a concept combining sustainable
and economical growth, innovative circular business models exist.
The question has been raised if these business models can be used
to help durable premium products to reach price-sensitive
customers on emerging markets.

Purpose The purpose of the project is to develop a business model aiming
to increase the case company’s market share of dairy processing
components on the Indian market while maintaining their position
as a high quality brand.
Methodology The project is performed as a case study in collaboration with a
case company and therefore the research approach is qualitative
and the research purpose is exploratory. However a market
analysis of the Indian market is conducted and for this reason the
purpose is also descriptive. Secondary data regarding the theory
behind circular economy and the Indian market is collected
through an extensive literature review. Primary data is mostly
gathered through a number of interviews with the case company’s
employees providing insights to the case company’s operations on
the Indian market and knowledge about their customer base.

Conclusion The recommended circular return strategy for the case company
includes the product return models leasing, trade-ins and products
repurchase and product recovery by either refurbishing or
remanufacturing are most suitable for the case company.
Indications show that this business model is a possible way for the
case company to take market shares on the Indian market. In
particular, private Indian companies with medium to high capacity
can be receptive for circular return strategies. Furthermore, it could
give the case company a competitive advantage since no similar
business models are currently used on the Indian dairy market. The
availability of CIP components to recover is currently the largest
obstacle from the customers’ point of view. However, before
implementing of circular return strategies their suitability need to
be evaluated from the company’s perspective and factors such as
reversed logistics, organizational mindset and costs need to be
taken into consideration. (Less)
Please use this url to cite or link to this publication:
author
Bjellerup, Sophie and Kraft, Linnéa
supervisor
organization
alternative title
The Customer Attitude towards Product Return Models and Recovered Components
course
MIO920
year
type
M1 - University Diploma
subject
keywords
emerging markets, growth strategies, Indian dairy market, product return models, recovery options, circular business models, Circular economy
other publication id
15/5522
language
English
id
7869325
date added to LUP
2015-09-18 09:57:55
date last changed
2015-09-18 09:57:55
@misc{7869325,
  abstract     = {Background Companies producing premium products with high quality and 
long product life can experience challenges when trying to 
penetrate price-sensitive customer segments on emerging markets 
due to a high product price. One way to achieve growth in these 
segments is to introduce new innovative business models. From 
the theory of circular economy, a concept combining sustainable 
and economical growth, innovative circular business models exist. 
The question has been raised if these business models can be used 
to help durable premium products to reach price-sensitive 
customers on emerging markets. 

Purpose The purpose of the project is to develop a business model aiming 
to increase the case company’s market share of dairy processing 
components on the Indian market while maintaining their position 
as a high quality brand. 
Methodology The project is performed as a case study in collaboration with a 
case company and therefore the research approach is qualitative 
and the research purpose is exploratory. However a market 
analysis of the Indian market is conducted and for this reason the 
purpose is also descriptive. Secondary data regarding the theory 
behind circular economy and the Indian market is collected 
through an extensive literature review. Primary data is mostly 
gathered through a number of interviews with the case company’s 
employees providing insights to the case company’s operations on 
the Indian market and knowledge about their customer base. 

Conclusion The recommended circular return strategy for the case company 
includes the product return models leasing, trade-ins and products 
repurchase and product recovery by either refurbishing or 
remanufacturing are most suitable for the case company. 
Indications show that this business model is a possible way for the 
case company to take market shares on the Indian market. In 
particular, private Indian companies with medium to high capacity 
can be receptive for circular return strategies. Furthermore, it could 
give the case company a competitive advantage since no similar 
business models are currently used on the Indian dairy market. The 
availability of CIP components to recover is currently the largest 
obstacle from the customers’ point of view. However, before 
implementing of circular return strategies their suitability need to 
be evaluated from the company’s perspective and factors such as 
reversed logistics, organizational mindset and costs need to be 
taken into consideration.},
  author       = {Bjellerup, Sophie and Kraft, Linnéa},
  keyword      = {emerging markets,growth strategies,Indian dairy market,product return models,recovery options,circular business models,Circular economy},
  language     = {eng},
  note         = {Student Paper},
  title        = {Circular Return Strategies for the Indian Dairy Market},
  year         = {2015},
}