Strategy Learnings

  Pegasus Airlines has achieved considerable growth as a low-cost carrier. CEO Güliz Öztürk discusses its key strategic choices. DOWNLOADS Article (4 pages) Güliz Öztürk joined  Türkiye’s Pegasus Airlines in 2005, when it was a charter operation with 14 aircraft. She helped oversee the company’s transformation into a scheduled airline—with a fleet that now numbers more than 120 aircraft (not including a recent order for at least 100—and up to 200—more) and a route map that includes 53 countries. Öztürk became chief commercial officer of Pegasus in 2010 and was named its CEO in 2022. In this installment of  Travel Disruptors , Öztürk spoke with McKinsey’s Can Kendi about the distinctive business model choices Pegasus has made, the difficulty of applying a low-cost approach to long-haul travel, and Pegasus’s efforts to become a tech innovator in the  airline sector . The following is an edited transcript of their recent conversation in Istanbul. For more about the busi...

  Cadbury’s (Mondelez India) distribution strategy is a textbook example of high-velocity FMCG execution , optimised for impulse, temperature sensitivity, and absolute reach . Below is a structured, India-specific breakdown , focusing on what actually makes it unbeatable. 1. Core Distribution Philosophy “Be available everywhere, at the moment of impulse, in the right condition.” Cadbury does not chase margin first; it chases reach, freshness, and visibility . Margins are engineered later through scale. 2. Multi-Tier Distribution Architecture A. Manufacturing → CFA (Carrying & Forwarding Agents) Regional CFAs across India Hold inventory, manage GST, service distributors Ensure rapid replenishment and stock rotation B. CFA → Super Stockists / Distributors Territory-based exclusive distributors High throughput, low inventory days Focus on route coverage, not SKU push C. Distributor → Retail Unmatched width & depth 1.8–2.0 million outlets ...

  1. Core Distribution DNA (One-Line Summary) Company Distribution DNA Cadbury Impulse-led, micro-reach, high velocity Amul Supply-led, daily replenishment, cold-chain muscle ITC Portfolio-led, leverage-and-cross-sell machine 2. Network Scale & Structure Parameter Cadbury Amul ITC Retail reach ~1.8–2.0 mn outlets ~1.0–1.2 mn outlets ~1.0–1.1 mn outlets Distribution model CFA → Distributor → Retailer Cooperative → Union → Federation → Retail CFA → Distributor → Retail Ownership Fully private Farmer-owned cooperative Corporate conglomerate Control intensity Very high Very high High 3. Product–Distribution Fit (Why Each Model Works) Cadbury Small SKUs (₹10–₹40) Low weight, high turnover Impulse purchase No daily replenishment required Result: Maximum width of distribution. Amul Perishable, cold-chain dependent Daily milk and butter movement Heavy capex in chilling, transport Result: Absolute trust and availability in staples. ITC Large, d...

 Below is a clear, India-specific FMCG startup framework derived directly from Fulvio Pagani’s playbook , adapted to Indian market realities (price sensitivity, channel fragmentation, regulatory complexity, and inflation cycles). This is written as a founder’s operating doctrine , not theory. The Pagani Framework for Building an Indian FMCG Company 1. Start With a Product Indians Can Buy Daily (Non-negotiable principle) Pagani logic In volatile economies, daily-affordable indulgence never collapses . India translation Choose products where: Consumer can buy ₹1–₹10 per unit Purchase frequency is daily or weekly Consumption is habitual, not aspirational Strong categories Candies, toffees, gums Biscuits, rusks Sachet beverages (tea premix, glucose drinks) Savoury snacks in ₹5 packs Avoid initially Large packs Premium-only SKUs Products requiring refrigeration 2. Design for Kirana, Not Modern Trade (Distribution-first thinking) Pagani ...

  HUL’s Structured Goal-Setting: “Must-Win Battles” Hindustan Unilever Limited (HUL) uses a very disciplined strategic planning model. Although HUL does not publicly release every detail, their approach is widely known in leadership and FMCG circles and aligns closely with Unilever’s global performance rhythm. Below is the distilled structure: 1. What Are Must-Win Battles (MWBs)? MWBs are the top 3–5 strategic priorities that a business must achieve in a given year or cycle in order to win in the marketplace. They have three characteristics: ✔ Decisive These goals unlock disproportionate growth or prevent major risk. ✔ Non-negotiable Leaders commit resources and time; failure is not an option. ✔ Cross-functional Sales, marketing, supply chain, R&D, finance — all must work in sync. 2. How HUL Defines an MWB (Framework) HUL uses a structured sequence: (1) Business Diagnosis Category health (penetration, frequency, premiumisation) Market map (competitive sh...

Top 10 Learnings from The Monk Who Sold His Ferrari — simple, powerful, and directly applicable to daily life: --- 1. Master Your Mind Your mind is your greatest asset. Train it to focus on positivity, purpose, and discipline — not fear or distraction. --- 2. Follow Your Purpose (Your “North Star”) A meaningful life requires a clear purpose. Know what truly matters to you and make every action aligned with it. --- 3. Practice Kaizen (Continuous Self-Improvement) Small, consistent improvements in habits, health, and thinking create big transformations over time. --- 4. Live with Discipline Self-control is freedom. Whether it’s waking early, exercising, or staying calm — discipline shapes destiny. --- 5. Respect Your Time Time is your most precious resource. Cut out time-wasters and invest your hours in what gives growth, joy, or contribution. --- 6. Nourish Your Relationships Real happiness comes from meaningful connections. Be present, express appreciation, and spend quality time with ...

1. The 20/20/20 Formula The first hour of your day (5:00–6:00 AM) should be split into three 20-minute blocks: 20 mins – Move: Exercise to activate dopamine and energy. 20 mins – Reflect: Meditate, journal, or plan your day. 20 mins – Grow: Read, study, or learn something new. This is the heart of the book. --- 2. Victory Hour = Daily Self-Mastery Sharma says your first hour sets the tone for your entire day. A strong “Victory Hour” creates calm, focus, and high performance for the next 23 hours. --- 3. The Four Interior Empires Instead of just mindset, you must balance four “empires”: Mindset — your thoughts Heartset — emotional wellbeing Healthset — physical fitness Soulset — purpose and spirituality True success = balance in all four. --- 4. Habit Formation: The 66-Day Rule Sharma explains that any new habit goes through three stages: Destruction (Days 1–22) – breaking the old pattern Installation (Days 23–44) – difficult middle phase Integration (Days 45–66) – the habit becomes nat...

1. The 20/20/20 Formula The first hour of your day (5:00–6:00 AM) should be split into three 20-minute blocks: 20 mins – Move: Exercise to activate dopamine and energy. 20 mins – Reflect: Meditate, journal, or plan your day. 20 mins – Grow: Read, study, or learn something new. This is the heart of the book. --- 2. Victory Hour = Daily Self-Mastery Sharma says your first hour sets the tone for your entire day. A strong “Victory Hour” creates calm, focus, and high performance for the next 23 hours. --- 3. The Four Interior Empires Instead of just mindset, you must balance four “empires”: Mindset — your thoughts Heartset — emotional wellbeing Healthset — physical fitness Soulset — purpose and spirituality True success = balance in all four. --- 4. Habit Formation: The 66-Day Rule Sharma explains that any new habit goes through three stages: Destruction (Days 1–22) – breaking the old pattern Installation (Days 23–44) – difficult middle phase Integration (Days 45–66) – the habit becomes nat...

 The Friendship Recession ​I recently read an article in the Harvard Business Review which stated that the Friendship Recession—a rapid global decline in friendships—is on the rise worldwide. ​Since 1990, the number of people in the United States who say "I have no close friends" has quadrupled to 12%. Meanwhile, the number of people who have 10 or more close friends has decreased by one-third. ​A similar situation is being observed in urban areas of India, where the number of acquaintances is increasing, but true friendships are diminishing. ​Previously, people used to converse with strangers in cafes, clubs, or events. Now, people remain isolated even in a crowd. In the US, the number of people dining alone has increased by 29% in the last two years. ​Stanford University has even started a course on friendship. This is not just a social issue, but a cultural problem. ​Making time for friendship is no longer a luxury, but a necessity. Loneliness is becoming an addiction. If ...

Layer 1 — Strengthen the Core Engine Your core engine is: Sourcing Grading & blending (floor + drum) Packing (FFS + manual) Distribution Storage Before building a platform, tighten these: Use low-cost blending drums to reduce floor blending dependence Barcode inventory + issuing (you already asked this — good instinct) Standardize COA, QC, moisture control, FIFO Modularize packaging lines so you can switch SKUs in minutes This gives you the foundation to add bolt-on businesses. Layer 2 — The Bolt-On Profit Lines These are plug-ins that use the same raw material, same machines, same warehouse, same team — but 3–7x the margin. 1. HORECA / Institutional Bulk Packs 1kg, 2kg, 5kg, 25kg packs for offices, hotels, catering Massive volume, high repeat business Low marketing cost Easy to sell citywise (as you asked earlier) 2. Premixes (Tea + Ginger + Masala + Cardamom) Can be: Dry premix Wet paste premix Instant (for cafés...