Before
The client's situation
- A state cooperative with a strong dairy distribution legacy wanted to enter categories that live or die within 24–48 hours of freshness.
- Categories assessed were bakery, batter and ready-to-cook (RTC) foods.
- The Kerala opportunity was mapped at ₹2,562 crore, about 7% of packaged foods, growing at a 7.03% CAGR.
Challenge
The question that had to be answered
Can an existing dairy distribution network support perishable bakery, batter and ready-to-cook products?
MARC's approach
What we did
- 1
A 150-stakeholder field study across 9 Kerala districts.
- 2
Analysis of route economics, trade margins, credit cycles, wastage and competitor benchmarks.
- 3
A 90-day hub-and-spoke pilot model, so the network could be tested before capital was committed.
Result
What the work delivered
- Trade economics, not consumer pull alone, decide whether a product earns shelf presence.
- RTC carried the highest margin but also the most severe working-capital and wastage risk.
- Distributor viability required routes under 40 km, 25–50 outlets per route and fulfilment in under 48 hours.
Consulting takeaway
The right question was not “is there demand?” It was whether the distribution system could protect freshness, margins and working capital together.
Distribution feasibilityPackaged foodsKeralaRoute economicsPilot design
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