Case Study: Growing a Successful Distribution Business. Carpathians’ Cheeses
Background: Carpathians Cheeses is a small Ukrainian distribution company that specializes in buying craft cheeses from small farms in the Carpathian Mountains and distributing them through online selling platforms. Nataliya, the business owner and head of marketing at Carpathians Cheeses, seeks assistance from Mykhailo Lutskiy, an expert from KSE consulting initiative, in applying for grants to overcome operational bottlenecks. The company aims to expand its warehouse facility, improve food storage, enhance processing logic, and establish reliable partnerships with suppliers.
Website: https://foodmix.lviv.ua/
Facebook: https://www.facebook.com/foodmix.lviv.ua
Instagram: https://www.instagram.com/foodmix_shop/
The company’s success is attributed to a combination of factors, including a strong online presence, attention to market segmentation, reliable partnerships, and exceptional customer service. This article provides step-by-step guidance on how to replicate their success and grow a distribution business, highlighting key strategies and insights from the head of marketing at Carpathians Cheeses.
Step 1: Setting up Operations
To ensure smooth operations, it is essential to address any bottlenecks and limitations. Nataliya recognized the need for a larger warehouse facility with improved food storage and shipping capabilities. They are expanding cold storage, vacuum packaging equipment, cutting tools, and sanitary tables for food packing. Nataliya's attention to detail and dedication to employee well-being, such as having a bomb shelter nearby, demonstrated a commitment to creating a safe and efficient work environment.
Step 2: Establishing Reliable Supplier Relationships
Nataliya encountered challenges in finding dependable suppliers for both soft and hard cheeses. To tackle this, she launched a targeted advertising campaign to attract new suppliers. This not only attracted potential partners but also motivated existing suppliers to improve their offerings and maintain the partnership. Nataliya emphasized the importance of trust-building and educating suppliers about the benefits of reliable cooperation. By consistently delivering on promises and maintaining transparent communication, Cartpathians Cheeses built strong and dependable supplier relationships.
Step 3: Strategic Marketing and Customer Segmentation
Nataliya shared her insights on market segmentation and customer acquisition. She meticulously identified customer preferences, buying behaviors, and future purchase potential. Through personalized interactions and feedback collection, Cartpathians Cheeses was able to tailor their offerings to customers’ needs and preferences. Nataliya emphasized the importance of maintaining relationships with customers, as each customer brings long-term value to the business through repeat purchases and the potential for upselling.
Step 4: Product Development and Testing
Cartpathians Cheeses is continuously testing new products and platter designs, ensuring they were visually appealing and enticing to customers. By investing in hiring a specialized designer to develop premium visual representation of their products, they effectively captured the attention of potential customers and showcased the quality of their craft cheeses. Nataliya's attention to detail and constant pursuit of innovation played a significant role in their success.
Step 5: Exploring Export Opportunities
Nataliya and Mykhailo discussed the potential of export alliances to tap into the buying behavior of Ukrainians residing in neighboring countries, such as Poland. By strategically aligning with other small companies, they could address the preferences of this customer segment and expand their market reach beyond Ukraine. Exploring export opportunities may allow Cartpathians Cheeses to diversify their customer base and increase profitability.
Step 6: Business Goals and Applying for Grants
Recognizing the need for additional resources to support growth, Nataliya and Mykhailo worked together on defining business goals for the next few years, business problem definitions and filling out grant applications. They focused on presenting long-term growth goals, such as expanding the network, investing in the local economy, and hiring more employees. By aligning their grant application with these objectives, they increased their chances of receiving financial support.
Cartpathians Cheeses serves as an exemplary case study for growing a successful distribution business. By combining effective operations management, reliable supplier partnerships, strategic marketing, customer segmentation, product development, and exploring export opportunities, Nataliya and her team achieved remarkable success. Their commitment to educating Ukrainian consumers about the quality of local cheeses showcases their mission to position Ukrainian cheeses as valid competitors to international favorites. By following these step-by-step guidelines, aspiring entrepreneurs can learn valuable lessons and replicate the growth and success of Cartpathians Cheeses in their own businesses.
While this series of consultations for Carpathians Cheeses are finished, Natalia has now access to networking, special offers from partners and other value-added services so needed in small companies.
The Kyiv School of Economics (KSE) consulting initiative is focused on supporting Ukrainian SMEs affected by the war, but one of its value added offers is creating a network of small businesses beyond the borders. Through the Buddy program a Canadian dynamic and curious business can join this growing community. Imagine the possibilities of bouncing ideas, exchanging expertise, and initiating collaborations with fellow entrepreneurs.
If you wonder how to become a part of this growing community, don't hesitate to reach out. We will pair you with one of our small businesses, set up a Zoom meeting where you can meet each other and create a connection where all parties can learn and help each other grow.
