Product details

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Case
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Reference no. IMD-3-2379
Published by: International Institute for Management Development (IMD)
Originally published in: 2013
Version: 06.09.2013
Length: 14 pages
Data source: Field research

Abstract

This is part of a case series. Fan Milk's business model was based on turning surplus milk in Denmark into milk powder, shipping it to West Africa, and reconstituting the powder into milk locally. By 2012, Fan Milk offered more than 20 brands of dairy-based (85%) and other (15%) products, operating in six West African markets. A major challenge for Fan Milk was establishing the 'cold chain' to ensure that products would be kept frozen or chilled all the way from the centralised factory, through central distribution hubs, to the individual decentralised local distribution shops, and on to the street for sale. Being widely available on the street was how Fan Milk built up its success. From the start, Fan Milk used street vendors to sell its products, first from bicycles, but later also from push carts, head boxes and hip boxes, mostly locally produced. Fan Milk decided to improve the customer experience and brand perception by developing a comfortable combined head and hip box meeting 'cold chain' and health requirements for use in all their markets, but with a single uniform design.
Location:
Size:
In 2012, revenues of DKK880 million (USD155 million)
Other setting(s):
2013

About

Abstract

This is part of a case series. Fan Milk's business model was based on turning surplus milk in Denmark into milk powder, shipping it to West Africa, and reconstituting the powder into milk locally. By 2012, Fan Milk offered more than 20 brands of dairy-based (85%) and other (15%) products, operating in six West African markets. A major challenge for Fan Milk was establishing the 'cold chain' to ensure that products would be kept frozen or chilled all the way from the centralised factory, through central distribution hubs, to the individual decentralised local distribution shops, and on to the street for sale. Being widely available on the street was how Fan Milk built up its success. From the start, Fan Milk used street vendors to sell its products, first from bicycles, but later also from push carts, head boxes and hip boxes, mostly locally produced. Fan Milk decided to improve the customer experience and brand perception by developing a comfortable combined head and hip box meeting 'cold chain' and health requirements for use in all their markets, but with a single uniform design.

Settings

Location:
Size:
In 2012, revenues of DKK880 million (USD155 million)
Other setting(s):
2013

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