Lakshya Food India Limited (LFIL): Finding the Right Position in Dairy Business

Abstract

Laxman and Joel, managing directors of Lakshya Foods India Ltd., faced a positioning issue for their milk brand. The young entrepreneurs had acquired a stake from Mr Redu, the founder and owner of Lakshya, a regional dairy company based out of Haryana, India, in 2012. While designing their annual marketing plan for 2019, they were not able to figure out what made Lakshya different from its competitors.

The dairy market dynamics were changing with varying consumption patterns, people becoming more health-conscious, a rise in disposable income and consumer demand for variety in the product range. Due to these changes, the competition was growing intense in the dairy business. From renowned national brands such as Amul, Mother dairy, Madhusudan etc., establishing foothold to various app-based online milk vendors such as Daily Ninja, Milk Basket and Country Delight entering dairy space, everyone was fighting for more market share. There was a substantial unorganized market that had a loyal customer base. Different brands were using different value propositions to compete in the market, such as quality, purity or attractiveness of the packaging to pull consumers. The two young entrepreneurs were unsure about what would work better with the Indian buyers; purity, freshness, taste or health. These milkpreneurs wanted to convey a proposition that was deeper and moved Lakshya from mundane milk to a preferred choice of every household.

Until now, there was no clear communication strategy, and various channels were used at any time of the year to reach customers, which led to target bullets in the air and wasting marketing effort. They wanted to make Lakshya a national dairy brand, but they were uncertain how to differentiate their dairy brand. They had to decide a value proposition that would help Lakshya position itself firmly in the dairy market.