Marketing Plan Dutch Lady Milk Industries Essay

Dutch Lady Milk Industries Berhad (DLMI) is a leader in the quality strike offed dairy farm business in Malaysia. It was incorporated in 1963, and was the first draw company in Malaysia to be listed on Bursa Malaysia, the local anesthetic anaesthetic Stock Exchange in 1968. Its holding company is kinglike FrieslandCampina, a Dutch multinational corporation and one of the largest milk companies in the world. Permodalan Nasional Berhad is the second largest sh beholder in the Company.Corporate VisionTo spread the goodness of milk to everyone.Corporate MissionTo compel value for our owners, in short and long term, by means of profitable dairy activities. To develop, produce and market a kind range of reliable, natural and nutritious dairy point of intersections that contribute to well-being and vitality of life. To recognize that know-how, quality, dedication and leadership of our employees atomic number 18 the most crucial assets to achieve our tushs. For generations, Dutch Lady Milk Industries principal business is to supply quality dairy and infant nutrition fruits to the nation. Today Dutch Lady ranks among the top three dairy producers in Malaysia. Generations of Malaysians have grown up on Dutch Lady dairy products. While Dutch Lady first established itself as a manufacturer of sweetened condensed milk, Dutch Lady Milk Industries extensive product range now spans from infant formula and growing up milk to payoff juice and yoghurt snacks.Every product innovation that rapidly develops infant and child formula range is backed by extensive research twain locally and internationally. DLMI is the largest purchaser of local fresh milk from the Veterinary Services Department. It also 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 Control and Quality Assurance are bloom of youth considerations. In line with this, the Com pany has continually been accredited with ISO 9001 certification since 1995. Strong emphasis is also placed on food safety with the implementation of HACCP (Hazard analytic thinking Critical Control Point) System to cover all its inventionts. Since it commenced manufacturing in 1963, DLMI has steadily expanded its operations in Malaysia. Its chilled plant is one ofthe most modern in southeastern East Asia. SECTION 2.0 BUSINESS OVERVIEW finger 1 Total market for Chilled Business 2Source DLMI (2009)As cross-filen in Figure 1, the total chilled (total of have yoghurt, yoghurt drink and cultured milk) market is consistently growing but at a very slow rate. Therefore, Dutch Lady is hoping to play a role in growing this niche market where most players neglect. From a recent study done by a third party, consumers nowadays are vey health conscious and are ready to take up anything that could help benefit their health. This is especially helpful with the females growing interest in gett ing trim through exercise or daily intake of nutritious yoghurt. Figure 2 Chilled Business Volume Percentage Share by Players 3 Source ACNielsen Malaysia (2009)DLMI is before long at third position in terms of percentage volume share for chilled business in comparison to Msia Milk, the market leader and nuzzle at second. This is due to DLMIs restrain chilled product line. MSia Milk, though still provides Fresh and Low Fat Milk, their best seller are the 2 Litres package size and indeed, in terms of volume and value they are still the market leader. near on the other hand spells 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 because 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 product lighting and flavours. This could provide DLMI the opportuni ty to capture the market through target groups and segmentation of the market which will be discussed later in the other sections.Moreover, by pile up enough information of the potential areas, DLMI could use the merchandise mix to help boost their sales and have a larger consumer base for the chilled market. In regularise to gel all these ideas into possible actions, the author would like to propose a bold move into introducing the Tropi washstanda looking at for all range and pack size for twain(prenominal) yoghurt and drinking yoghurt. This Tropicana flavor will definitely draw attention and create a saucily group of consumers. Plus no other challenger products have come out with such thrilling flavor, therefore these would definitely draw to those whomare bored of the old traditional flavours and are looking for youthful range of stimulation for their taste buds.SECTION 3.0 TARGET MARKETFigure 3 Sales Review for Chilled Product by Chain 4Source BW (2009)As depict in Fig ure 3, Giant chain supermarket is the one with the higher(prenominal)est sales value growth for chilled business and Tesco at second place. Hence, DLMI could target the consumers from both these chains as the prune 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 builds on purchasing at bulk to keep the selling price as low as possible 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 saucy Tropicana flavor. Figure 4 Sales Review for Chilled Product by Chain 5Source Dunnhumby (2009)Presently, DLMI demarcation of area is by Central (Seremban, Pahang, Klang, Kajang, Petaling Jay a) East Coast (Kota Bahru, Kuantan) North (Perak, Penang, Kedah, Perlis) South (Melaka, Batu Pahat, Johor Bahru) Sabah and Sarawak. And as shown in Figure 5, the AMS for Central seems to be the most promising area of development followed by South and then North. Therefore, it is safe to conclude that consumers at to a greater extent developed areas are more particular towards living a levelheaded 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 divers(prenominal) target groups set income group which frequent hypermarkets or supermarkets at central, south and north region with basket size of about RM35 to RM40 per visit Teenagers age 35 and below whom are at the launch of their career and tends to emphazise slimming and natural beauty Adults 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 many point of sales, it is therefore considered a potential market which DLMI would like to nurture in hope that they could construct a loyal customer base as a curriculum for future consumers while at the same time educating these consumers about the importance of eating and chiping healthy. The Tropicana flavour would be able to cater to these group of health concious consumers because it is sizeable in nutrients from all the mix tropical fruits.SECTION 4.0 LONG TERM AND SHORT TERM GOALSSHORT TERMChilled products are very dependent on forward motions, therefore for the short term goal, DLMI hope to successfully execute all promotional materials planned throughout the year as depicted in Table 2. The selections of the promotion are during festive seasons where consumers are more likely to spend more. The author is hoping to be a trend setter using t hese promotion plans by promote consumers to purchase more yoghurt drinks and yoghurt as a festive item instead of just 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 few long term actions that DLMI could consider Focus on draw outlets with key SKUsListing of only the top flavoursOperation support from chain supermarket to build business further Conduct cross promo with any value added product arrest additional space for greater visibilityImplementation of segmentation according to agreed planogram Implement trade schemes to drive distributionMount activities to convert adversary usersPromotional activities to reward loyal usersInduce trial through giving out free s ample 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 selling Above The Line 360 Activation 8Source DLMI (2009)DLMI 360 activation plan is one form of marketing scheme to create brand awareness and ideally brand preference among existing consumers and possibly new users who will prefer a new sort of exciting taste. The awareness campaign will touch on all forms of media from online advertising to advertising on the shelf itself to news and ads.ADVERTISINGDLMI will roll out a coordinated advertising campaign to show 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(prenominal) weeks before the new introduction of products to inform people of how healthy is Dutch Ladys yoghurt and changing to meet thei r needs. Billboards, television, radio, and display 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 under 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 silent background to serve the product tagline.PUBLIC RELATIONSDLMI will pursue the following public relations oriented programs DLMI will institutionalise together a press kit showing LOreals commitment to grow and serve the Dutch market. We will include key facts including our additions to the avocation rolls and charitable contributions. We wil l look to host and/or grass events that appeal 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 models 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 geared towards the younger and first time consumers. The Shows will focussing on education 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 displayed on all advertisements associated with the new flavour product.PRODUCT TAGLINETHE TROPICAL SILENCE THAT BRINGS HARMONY TO Y OUR HEALTH PRODUCT VIDEO* Please refer to attached flash video*SECTION 6.0 built in bed ANALYSES gargantuan S.W.O.T. ANALYSESGIANTCUSTOMER GIANTSTRENGTHSWEAKNESSCHANELHypermarketWide distribution network with high number of barge ins. (Total 110 outlets, EM 10 outlets and PM 91 outlets) Giant operation team welcome in- instal approaches on tactical promotions (priority accustomed to top suppliers) interpose 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 level for promotions Scan sales data provided to Category Captain limited to 7 Hypermarkets. No standard concept for HS display at CS/Supermarkets due to no plan-o-gram design for these channels. Plan-o-gram of stores is sometimes invited by competitorIssues at DC-No system to measure on-time delivery to stores.Weakness of delivery window to stores (too big gap from date of orders receipt to delivery that cause stock issues at store level. Capacity issue to manage high stock weight/turnover.Issues at Store Level-Some of the store buyers are lack of soul of internal SOP and not discipline in ordering - lead to replenishment issues at store level. Service problems of Chilled vendors to supermarkets/CSSupermarketCold StorageGIANTCUSTOMER GIANTOPPORTUNITIESTHREATSCHANELHypermarketsLow store productivity due to issues at DC and store level.Store amplification (5 hypermarkets & 10 supermarkets)Joint forecast 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). Consistency in stock deliveries of competitors that helped their A&V at store level and promotion execution.SupermarketSOS improvement by initiating plan-o-gram for CS/ Supermarkets and influence store buye rs to allocate more SOS to DL products. Customised promotion for Supermarkets/CS that has different shopper profile.Cold StorageGIANTDLMI IN CUSTOMER (GIANT)DLMI VS COMPETITIONSTRENGTHWEAKNESSOPPORTUNITIESTHREATSCATEGORIESChilledWe are No. 3 suppliers in Chilled category 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 facing is less prominent compared to competitors.According to Giant CM, shopper behaviour is trending towards bulk 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 margin to Giant compared to other suppliers. Multipack promotion (Buy 4 at RMxx) to encourage bulk purchase. Mini road show for LF RTE and DKY in order to bring new excitement to shoppers. Stiff competition from Nestle-60% contributio n to total salesDeep pocket and fight down fast to competition.Category captain.Dominant SOS at store level.Shine DKYContinual innovation from DLMI who has strong market share in DKY segment. Creative to bring new things to shoppers,Lack of communication 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 sell chain with high % of Chinese compared to those with high % of Malay (i.e. Giant). Lack of margin to retailer (as above for RTE).Communication of product benefits via sampling at selected stores. Giant has the in effect(p) shopper profile for SHINE to build a bigger consumer base. Promotion differentiation (i.e. TP FOC premium) to target Giants shoppers (Based on TNS research, promotion with premium giveaway is turn out effective in this category). Customized promotion for CS that captured the target shoppers. Explore TP/Triple packs promo to increase volume.Road show to create awareness and e nhance 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. efficacy in supply chain management and efficiency. Centralized system in Tesco that facilitates its EDLC operating 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 required especially during promotion to maximize the sales opportunity. Tesco is a value-led retailer its pricing policy is to be t he cover price on all comparable products versus the benchmark and to be the best value retailer.Tescos ability to gain customer insight, perform husky 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 utilise 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 power from HQ to store level on execution and operation issue to leads the smooth process Have long term initiatives calendar plan (12 month rolling initiatives calend ar) 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 ANALYSESTypeDLMI Chilled ProductsCompeting ProductsEating yoghourtLow FatNestle Fat Free, Marigold 0% Fat, F&N Alive, Private LabelDrinking YoghurtLow Fat & SHINENestle Bliss, Sunglo Lassi, Private LabelSECTION 7.0 ACTION PLAN / IMPLEMENTATIONObjectiveTo be the strong No 2 position in the chilled marketSelected strategyTo focus on major promotion with 3 major fair and to participate 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 look campaignKAM & TMJunMktgAnniversary & Milk For Life Campaign. Promotion generates about 200-400% growth, approx RM 700k To explore carton salesKAMQ uarterlyTM & 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 educate 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 provided 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 scan sales data and consumer off take.Read more http//www.ukessays.com/essays/marketing/marketing-plan-dutch-lady-milk-industries-marketing-essay.phpixzz37v6oAx4k