Puresh Daily: Where Purity meets Profit

 

Puresh Daily: Where Purity meets Profit

Going by the text books, I've learnt that a business is successful if it's making good profits; which is by selling its offerings at competitive prices while giving quality comparable or little superior to that of competitors. It's often postulated that focusing too much on quality of the offering can raise costs and get unprofitable.

If you think this is always true; think again! Today we'll see how superior quality, better customer service and an ethical touch can attract customers to new and costlier alternatives; over cheaper products of established brands.

This case is of "Puresh Daily", a startup in Jharkhand which provides fresh and healthy dairy products to the doorsteps of customers. Established in 2019, the company has been a resounding success, raising around 1 crore within a year. It achieved break even in just six months and saw profits double during the COVID-19 lockdown.

However, the way to success was full of hurdles:-

• Products having significantly higher prices compared to the general market (to ensure hygiene and best procedures).

• Neither a large capital nor an established brand image.

• An experience disadvantage as compared to most competitors. 

• Economic downturn and operational complexities due to the Corona virus.

Yet it soared to new heights when most other businesses were hit by losses. So, how did Puresh Daily succeed? Let's rewind a little first...

Mr. Manish Piyush and Mr. Aditya Kumar, who completed engineering from BIT Mesra in Ranchi, left their hometown for higher studies and went on to take up important roles in Tata Motors. While Mr. Manish Piyush became general manager- marketing, of Tata Motors; Mr. Aditya Kumar worked with TATA MOTORS as a program manager- M&HCV. They were at the epitome of their careers in an established company and yet, in 2017 during the Momentum meet in Jharkhand, Mr. Manish decided to leave his job and work towards the betterment of his home state and Mr. Aditya soon joined him.

Source- https://www.thebetterindia.com/239257/jharkhand-diary-milk-delivery-pure-fresh-cold-order-online-ranchi-startup-puresh-him16/

They started working on coding and software development, eventually getting a project which gave them an insight into the unhygienic and unhealthy processes and chemicals involved in the treatment of milk. They both decided to establish Puresh daily in January, 2019, as an answer to this common problem, each becoming director and cofounder. Their sales of dairy products grew exponentially as they gradually ventured into sale of other food products like fruits and vegetables.

Now that we know the background, what are the strengths that has made Puresh Daily a success despite all the odds stated earlier? Let's see the main points which led to success:-

1. Understanding the needs of common people in society, (i.e. the need for pure and unadulterated milk products for good health) and making it the core of marketing effort.

2. Taking the opportunities timely, such as the requirement of pure milk and also home delivery, specially during lockdown.

3. Maintaining an ethical stand, with hygenic practices and transparency, including safe and hygenic processing of milk, proper treatement of the cows and selling milk in glass bottles instead of unbiodegrable plastic.

4. Building and maintaining good brand image and trust with the customers at individual level, with the assurance of quality and personalised service.

5. Ensuring good use of technology for user convenience and better marketing; such as mobile application, online payment mode, social media presence and user friendly and informative website. 

Notably, the overall site design is highly impressive:-

You can't miss the well designed brand logo with distinct coloring and a cute cow drawing; the tagline "For your health"; natural backgrounds and colors; clear representation of awards/benefits/purity of its products; subtle animations; clearly displayed contact links including WhatsApp link; relevant blogs, pictures to support claims and the focus on health and purity in various statements.

6. Focusing on developing its niche and then gradually expanding their product range and geographic coverage.

7. Good marketing strategy which focused on the superior quality and service, hence enabling higher price.

8. Direct involvement and control over supply chain.

9. Marketing through word of mouth by customers who were impressed by the outstanding product quality.

10. Working together towards a good cause, while applying the wealth of experience they have gained during previous jobs....

We can conclusively infer that an effective marketing strategy along with high quality and customized service; can lead to high customer acquisition and rapid growth even in smaller markets. This is despite established competition, economic downturn and higher price. Also, the fundamental peace of mind offered to customers by assuring the quality of what they're consuming, appears to be a major success factor. After all, health is wealth!

As Puresh looks to expand geographically, further use of technology, data analysis, negotiating with new clients, forming franchises, expanding into relevant products like Stevia, Ayurvedic herbs etc. while marketing more aggressively appear as the ways ahead...

Puresh Daily Website- https://pureshmilk.com🐄

Case Analysis and Writing by Praharsh Chaubey