Marketing Plan Dutch Lady Milk Industries Essay

Dutch chick c every back out Industries Berhad (DLMI) is a cuter in the quality soiled dairy work in Malaysia. It was incorporated in 1963, and was the first draw company in Malaysia to be listed on Bursa Malaysia, the local Stock Exchange in 1968. Its keeping company is Royal FrieslandCampina, a Dutch multinational corporation and wholeness of the largest milk companies in the world. Permodalan Nasional Berhad is the jiffy largest sh beholder in the follow.Corporate surveyTo spread the goodness of milk to e reallyone.Corporate MissionTo occasion encourage for our owners, in short and farseeing term, by means of profit fit dairy activities. To develop, produce and merchandise a broad range of reliable, natural and whole approximately dairy convergences that contri onlye to well-being and vitality of life. To recognize that know-how, quality, dedication and leadership of our employees argon the about crucial assets to achieve our targets. For generations, Dutch Lad y draw Industries principal business is to tag on quality dairy and infant nutriment fruits to the nation. Today Dutch Lady ranks among the top triad dairy producers in Malaysia. Generations of Malaysians take in grown up on Dutch Lady dairy increases. While Dutch Lady first established itself as a manufacturer of sweetened condensed milk, Dutch Lady Milk Industries lengthy product range now spans from infant formula and growing up milk to fruit juice and yoghourt snacks.Every product innovation that quick develops infant and child formula range is backed by extensive research both locally and internationally. DLMI is the largest procurer of local fresh milk from the Veterinary Services De digressment. It in any case supports local industries by using a substantial amount of local ingredients such as palm oil and sugar in its products. The quality of the Companys products is paramount. Quality mark and Quality Assurance argon prime considerations. In line with this, th e Company has continually been accredited with ISO 9001 certification since 1995. Strong emphasis is besides put on food safety with the implementation of HACCP (Hazard Analysis Critical enclose Point) System to c over all its contrivets. Since it commenced manufacturing in 1963, DLMI has steadily expanded its operations in Malaysia. Its chilled plant is one ofthe most modern in southern East Asia. arm 2.0 BUSINESS OVERVIEW course 1 Total trade for Chilled Business 2 first DLMI (2009)As shown in Figure 1, the summate chilled (total of consume yoghurt, yoghurt potable and well-bred milk) merchandise is consistently growing but at a very slow rate. and then, Dutch Lady is hoping to adjoin a role in growing this niche grocery where most players neglect. From a recent study done by a terzetto party, consumers nowadays be vey health conscious and ar ready to take up anything that could help benefit their health. This is especially helpful with the females growing inv ade in getting slim by dint of exercise or free-and-easy intake of nutritious yoghurt. Figure 2 Chilled Business Volume luck Sh atomic number 18 by Players 3 kickoff ACNielsen Malaysia (2009)DLMI is currently at third piazza in terms of percentage volume share for chilled business in comparison to Msia Milk, the market leader and Nestle at second. This is delinquent to DLMIs limited chilled product line. MSia Milk, though only provides neat and miserable Fat Milk, their best seller are the 2 Litres package size and therefore, in terms of volume and value they are however the market leader. Nestle on the other hand offers a wider chilled product line by offering yoghurt, yoghurt drinks and cultured milk. These are the plausible reasons for DLMI inability to capture a larger market size beca pulmonary tuberculosis it neither produces 2 Litre package size milk not does it offers cultured milk as part of its chilled product line. Currently, the market is desperate for some pro duct excitement and smoochs. This could provide DLMI the opportunity to capture the market through target companys and class of the market which go out be discussed later in the other sections. more(prenominal)over, by collecting enough information of the potential areas, DLMI could use the marketing mix to help boost their sales and hasten a larger consumer base for the chilled market. In order to gel all these ideas into realistic actions, the author would like to propose a bold move into introducing the Tropicana savour for all range and pack size for both yoghurt and inebriety yoghurt. This Tropicana bladder fucus leave alone definitely draw attention and create a in the raw group of consumers. Plus no other competitor products have come out with such thrilling flavor, therefore these would definitely challenge to those whomare bored of the old traditional flavours and are run intoing for cutting range of stimulation for their taste buds.SECTION 3.0 TARGET MARKET Figure 3 sales Review for Chilled Product by Chain 4Source BW (2009)As depict in Figure 3, large kitchen stove supermarket is the one with the highest sales value growth for chilled business and Tesco at second place. Hence, DLMI could target the consumers from both these reachs as the trend that can be seen here is that consumers prefer to purchase chilled products at chain supermarkets with warehouse concept. Giant and Tesco are typically a supermarket that retraces on purchasing at mint to keep the marketing price as low as mathematical to attract consumers that are looking for supplies at below average market price. Consumers that purchase at Tesco and Giant are generally from the middle income group and form the Malay ethnic group as the main followed by Chinese ethnic as shown in Figure 4. For that reason, we could factor in these as part of the target group for the refreshed Tropicana flavor. Figure 4 Sales Review for Chilled Product by Chain 5Source Dunnhumby (2009) Presently, DLMI strain of area is by Central (Seremban, Pahang, Klang, Kajang, Petaling Jaya) East Coast (Kota Bahru, Kuantan) North (Perak, Penang, Kedah, Perlis) due south (Melaka, Batu Pahat, Johor Bahru) Sabah and Sarawak. And as shown in Figure 5, the AMS for Central seems to be the most shiny area of development followed by South and then North. Therefore, it is safe to decide that consumers at to a greater extent developed areas are more(prenominal) particular towards alimentation a goodly lifestyle. Figure 5 Average Monthly Sales of Chilled Business by Area 6 Source BW (2009)Therefore, the target market that DLMI is looking at to grow their chilled market share is through three different target groups Middle income group which frequent hypermarkets or supermarkets at central, south and north region with basket size of about RM35 to RM40 per haggle Teenagers age 35 and below whom are at the launch of their vocation and tends to emphazise slimming and natural beauty A dults age 35 and above whom are more health concious towards living a longer healthy life. Since yoghurts and yoghurtdrinks are classified as convenience products as it is bought frequently and immediately at reasonably low price with some point of sales, it is therefore considered a potential market which DLMI would like to nurture in hope that they could concept a loyal client base as a political platform for future consumers while at the same time educating these consumers about the importance of eating and staying healthy. The Tropicana flavour would be able to cater to these group of health concious consumers because it is rich in nutrients from all the mix tropical fruits.SECTION 4.0 tenacious TERM AND SHORT TERM GOALSSHORT TERMChilled products are very dependent on advances, therefore for the short term goal, DLMI hope to successfully execute all promotions planned passim the year as interpret in Table 2. The selections of the promotion are during festive seasons wher e consumers are more likely to spend more. The author is hoping to be a trend typesetter using these promotion plans by encouraging consumers to purchase more yoghurt drinks and yoghurt as a festive item instead of comely a convenience product. That is the very reason why most of the promotions for the chilled products are conducted during festive seasons and national fairs. Table 2 Promotion Plan for Chilled Products 7Source DLMI (2009)LONG TERMIn the long term however, DLMI is hoping to be able to strengthen the position further if the initial establishment succeed. These are the a few(prenominal) long term actions that DLMI could consider Focus on account outlets with key SKUsListing of only the top flavoursOperation support from chain supermarket to build business further Conduct cross promo with any value added productSecure additional space for greater visibilityImplementation of segmentation according to agreed planogram Implement trade schemes to drive distribution senesc e activities to convert competitor usersPromotional activities to reward loyal usersInduce examination through giving out free sample pack size.These long term plan are also meant to be continuously conducted throughout each year to secure the share of business in the chilled market. SECTION 5.0 MARKETING STRATEGIESFigure 6 Marketing Above The Line 360 energizing 8Source DLMI (2009)DLMI 360 activation plan is one form of marketing strategy to create brand awareness and ideally brand preference among existent consumers and possibly new users who give prefer a new mixture of exciting taste. The awareness prevail will touch on all forms of media from online publicise to advertising on the shelf itself to news and ads.ADVERTISINGDLMI will roll out a coordinated advertising campaign to express the following points Dutch Lady yoghurt is getting better, with a new and refurbished new tropical flavor. DLMI could consider using print and broadcast ads in women-oriented mediums several weeks before the new introduction of products to inform people of how healthy is Dutch Ladys yoghurt and changing to meet their needs. Billboards, television, radio, and showing signs will be primary vehicles for this. About two weeks before introduction, our ads will change from stressing our company image to stressing product line imaging. DLMI will also run specific ads the Tropical flavor product stressing its benefits to the consumers. This specific part of the campaign will primarily use magazines, radio, and other mediums targeted at the chthonic 25 aged crowd. After product introduction, will run advertising to persuade and remind consumers of our new products. There will be a customized advertisement of the video which shows the new Tropical flavor with a obtuse background to serve the product tagline.PUBLIC RELATIONSDLMI will watch the following public relations oriented programs DLMI will put unneurotic a press kit showing LOreals verity to grow and serve the Dutc h market. We will include key facts including our additions to the occupation rolls and charitable contributions. We will look to host and/orsponsor events that conjure to our target markets. For our more mature audience with increased dispensable income, we will sponsor a Women in Business seminar. Women in key roles as toughies or local actresses can be presenters. For those women at home, we will look into sponsoring events that will appeal more to them something along the lines of a home and/or garden show and conventional housewives will be chosen as the product ambassador. We also are excited about creating Health Shows pitch towards the younger and first time consumers. The Shows will focus on gentility of terms, etc. and actual hands-on training. They can be arranged on a small scale, e.g. a booth at a mall, to a larger event at a local hall with many booths. We will donate a portion of sales of the new Tropical flavour towards slimming research. This will be displaye d on all advertisements associated with the new flavour product.PRODUCT TAGLINETHE TROPICAL SILENCE THAT BRINGS HARMONY TO YOUR HEALTH PRODUCT scene* Please refer to attached flash video*SECTION 6.0 accompaniment ANALYSESGIANT S.W.O.T. ANALYSESGIANTCUSTOMER GIANTSTRENGTHSWEAKNESSCHANELHypermarketWide distribution interlock with high number of warehousings. (Total 110 outlets, EM 10 outlets and PM 91 outlets) Giant operation team welcome in-store approaches on tactical promotions (priority abandoned to top suppliers) Store layout with event area for in-store activitiesSpace allocation for activities at Kids Playground.Issues at HQ-No yearly promotion calendar to be furnished to suppliers for promotion planning. No full control over space allocation at store take for promotions Scan sales data provided to Category Captain limited to 7 Hypermarkets. No specimen concept for HS display at CS/Supermarkets due to no plan-o-gram aspiration for these channels. Plan-o-gram of stores is sometimes influenced by competitorIssues at DC-No frame to measure on-time delivery to stores.Weakness of delivery window to stores (too big cracking from date of orders receipt to delivery that cause stock exhausts at store level. Capacity issue to manage high stock weight/ upset.Issues at Store Level-Some of the store buyers are lack of soul of internal SOP and not discipline in ordering - lead to alternate issues at store level. Service problems of Chilled vendors to supermarkets/CSSupermarketCold retentivenessGIANTCUSTOMER GIANTOPPORTUNITIESTHREATSCHANELHypermarketsLow store productivity due to issues at DC and store level.Store expansion (5 hypermarkets & 10 supermarkets)Joint count with Giant in order to have smooth pipeline to stores and modify forecast accuracy. Nestle is given priority by DC on storage anddelivery to outlets (due to top-to-top agreement on sales target and incentives). body in stock deliveries of competitors that helped their A&V at store leve l and promotion execution.SupermarketSOS improvement by initiating plan-o-gram for CS/ Supermarkets and influence store buyers to divvy up more SOS to DL products. Customised promotion for Supermarkets/CS that has different shopper profile.Cold terminalGIANTDLMI IN CUSTOMER (GIANT)DLMI VS COMPETITIONSTRENGTHWEAKNESSOPPORTUNITIESTHREATSCATEGORIESChilledWe are No. 3 suppliers in Chilled house after Cotra and F&N. Strong brand equity.We are lack of focus in Chilled compared to Ambient and no creativity in promotion activity. Our liner is less prominent compared to competitors.According to Giant CM, shopper behaviour is trending towards legal age purchase in chilled category. Customized promotion in Giant to associate DLMI image of dairy expert Competitors (Cotra and Nestle) are dominant in this category. RTEWe are No. 2 supplier in this category after Nestle.We are offered lower bank to Giant compared to other suppliers. Multipack promotion (Buy 4 at RMxx) to encourage bulk purc hase. Mini road show for LF RTE and DKY in order to bring new excitement to shoppers. Stiff competition from Nestle-60% contribution to total salesDeep pocket and react fast to competition.Category captain. ascendent SOS at store level.Shine DKYContinual innovation from DLMI who has unfluctuating market share in DKY segment. Creative to bring new things to shoppers,Lack of intercourse for benefits of green tea extract to the shoppers although its one of the key selling points. Based on TNS research, we are strong in retail chain with high % of Chinese compared to those with high % of Malay (i.e. Giant). Lack of margin to retail merchant (as above for RTE).Communication of product benefits via sampling at selected stores. Giant has the good shopper profile for SHINE to build a bigger consumer base. Promotion speciality (i.e. TP FOC premium) to target Giants shoppers (Based on TNS research, promotion with premium giveaway is proven effective in this category). Customized promoti on for CS that captured the target shoppers. seek TP/Triple packs promo to increase volume.Road show to create awareness and produce communication to the target shoppers.TESCO S.W.O.T. ANALYSESTESCOCUSTOMER TESCOSTRENGTHWEAKNESSOPPORTUNITIESTHREATSCHANELHypermarketTesco is well-positioned for further growth to be No. 1 Retailer Limited products range offer to customers as Tescos selection on high quality products, good turnover brands and high profit margin. Strong expansion with 10 outlets opening (5 in Q2-Q3 & 2 in Q4) No full control and influence over space allocation as category captain. Competency in supply chain management and efficiency. Centralized system in Tesco that facilitates its EDLC direct model whilst building service levels. Tescos regulation leads to inflexibility in execution such as no premium, no cross-category promo etc. With the strength of operating system and supply chain in Tesco to drive efficiency and improve stock turn ratios. Joint forecast is requi red especially during promotion to maximize the sales opportunity. Tesco is a value-led retailer its pricing policy is to be the right price on all comparable products versus the benchmark and to be the best value retailer.Tescos ability to gain customer insight, perform robust customer segmentation and deliver personalized marketing communication from its Club card loyalty Facing difficulties on stocks replenishment to be influenced at store level as store buyers are very dependent on system. The shopper behaviour insight gained from Tescos loyalty card data is currently used by Tesco in strategic decision-making, and to drive promotional activity Tesco has developed great expertise in private label development, and enable it to differentiate its offer from its competitors, build brand loyalty, grow margin and demonstrate both price and quality credentials. With the strong operating system and strategy having by Tesco, strong influence source from HQ to store level on execution an d operation issue to leads the smooth process Have long term initiatives calendar plan (12 month rolling initiatives calendar) in order to work closely with Tesco (eg, P&G, Nestle and Dumex) Tesco is growing aggressively to become big player in the retail market and it has market leading position which empowered them to have better negotiation power and demand against suppliers.PRODUCT COMPETITION ANALYSES typecastDLMI Chilled ProductsCompeting ProductsEating YoghurtLow FatNestle Fat Free, Marigold 0% Fat, F&N Alive, Private LabelDrinking YoghurtLow Fat & SHINENestle Bliss, Sunglo Lassi, Private LabelSECTION 7.0 carry out PLAN / IMPLEMENTATIONObjectiveTo be the strong No 2 position in the chilled marketSelected strategyTo focus on major promotion with 3 major fair and to accede in milk campaign ActionWhoBy WhenResourcesMeasuresTo maintain at least 3 times promotionKAM & TMMac, July & NovMktgIncremental of 80% 90%To participate in 3 major fair & Milk For Life campaignKAM & TMJunM ktgAnniversary & Milk For Life Campaign. Promotion generates about 200-400% growth, approx RM 700k To explore carton salesKAMQuarterlyTM & MktgEspecially on RTE and DKYTo create customized packKAMJunTM & MktgEspecially on RTE and DKYSECTION 8.0 CONCLUSIONSTo conclude, even though chilled category is still at its infancy stage, the potential to grow is there. More and more Malaysians are becoming more health conscious and they are constantly looking for new exciting reasons for them to continue staying healthy. Other than that, Malaysians also tend to only buy chilled products only during promotions periods or when and as needed. Therefore such a mindset should be change and Dutch Lady should be a trend setter for such changes to happen. The proposed of this new flavor is also an opportunity for DLMI to open a new window to rise the consumers that besides exercising, the only way to stay healthy is to eat and drink healthy too. The author would again reiterate that all data provide d are drilled solely by the author alone. The sources of the data taken are from the programmes and third party software that capture real life skip sales data and consumer off take.Read more http//www.ukessays.com/essays/marketing/marketing-plan-dutch-lady-milk-industries-marketing-essay.phpixzz37v6oAx4k