By taking the current situation of the company in mind and analysing all the challenges it is facing, I am proposing following solution as an advisory note for the expansion plan:

1.) The management of the Company should come up with a 3-year plan and set some targets to achieve in these three years. DND should strive towards achieving Break Even (Sales = Cost) in coming years so that it can recover all the cost incurred and further focus on its expansion plan. Here, the principle of “Authority and Responsibility” is used as the management has the authority to take decision and to give order but also has certain responsibilities to fulfill.

2.) Currently it has presence in 3 cities which are Delhi, Bengaluru and Hyderabad. It should look into the market of other metropolitan cities too like Mumbai, Kolkata and Chennai.

As the table above suggests, these cities have high population and a huge market which gives DND an opportunity to grow and expand further through these markets. As per a report by Hindustan studies, Mumbai is the largest consumer of processed cheese, accounting for 30 percent of cheese sold in the country, followed by Delhi (20%), Kolkata (7%) and Chennai (6%).

3.) Before expanding its operations in other cities and in Non-dense areas, a Pilot testing should be conducted in these particular areas to make sure that whether it will be feasible to operate in these cities or not.

4.) Other daily need products should also be included in the portfolio of DND such as Bread, eggs, processed cheese, etc. As discussed above, there is a high demand and consumption of processed cheese specially in metropolitan cities like Mumbai, Delhi, Kolkata, etc.

5.) Establishing good Business relationship with local vendors including Wholesale suppliers, merchants, etc. in all the cities where DND is operating so that it can procure good quality products at reasonable price. It will also help the company in getting an upper hand over other competitors in the market.

6.) Proper Customer service centre should be introduced for handling customer’s grievances and feedback. A chatbot can also be introduced who will be working on the queries of customers and a team of 3-4 people (in every district) will also be there for manually operating. In this way customers will not face any language related problem too. Also, for setting up of this a certain investment will be needed on which finance department should work on.

7.) Majority of the delivery executives should be hired from the local area as they will be having a good knowledge of the routes and the traffic situation in that particular area. In this way, DND will solve many of the delivery related problems as route optimization will be there and therefore, faster and on time deliveries can be achieved.