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Dutch Woman Milk Industries Berhad (" DLMI") is a leader in the quality branded dairy business in Malaysia. It was included in 1963, and was the first milk business in Malaysia to be listed on Bursa Malaysia, the regional Stock market in 1968. Its holding business is Royal FrieslandCampina, a Dutch international corporation and among the biggest milk business on the planet. Permodalan Nasional Berhad is the second largest shareholder in the Company.
To spread the goodness of milk to everybody.
To produce worth for our owners, in other words and long term, by ways of profitable dairy activities.
To develop, produce and market a broad variety of dependable, natural and nutritious dairy items that add to well-being and vigor of life. To acknowledge that know-how, quality, devotion and management of our employees are the most crucial assets to achieve our targets. For generations, Dutch Woman Milk Industries principal service is to provide quality dairy and infant nutrition items to the nation.
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Today Dutch Girl ranks among the top 3 dairy manufacturers in Malaysia. Generations of Malaysians have actually grown up on Dutch Lady dairy items. While Dutch Girl first established itself as a maker of sweetened condensed milk, Dutch Woman Milk Industries' comprehensive item range now covers from infant formula and growing up milk to fruit juice and yoghurt treats.
Every product innovation that rapidly develops infant and child formula range is backed by extensive research both 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 Company's products is paramount. Quality Control and Quality Assurance are prime considerations. In line with this, the Company has continually been accredited with ISO 9001 certification since 1995. Strong emphasis is also placed on food safety with the implementation of HACCP (Hazard Analysis Critical Control Point) System to cover all its plants. Since it commenced manufacturing in 1963, DLMI has steadily expanded its operations in Malaysia. Its chilled plant is one of the most modern in South East Asia.
DLMI is currently at third position in terms of percentage volume share for chilled business in comparison to M’sia Milk, the market leader and Nestle at second. This is due to DLMI’s limited chilled product line. M’Sia Milk, though only provides Fresh and Low Fat Milk, their best seller are the 2 Litres package size and therefore, in terms of volume and value they are still 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 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 excitement and flavours. This could provide DLMI the opportunity to capture the market through target groups and segmentation of the market which will be discussed later in the other sections.
Moreover, by collecting enough information of the potential areas, DLMI could use the marketing mix to help boost their sales and have a larger consumer base for the chilled market. In order to gel all these ideas into possible actions, the author would like to propose a bold move into introducing the ‘Tropicana’ flavor for all range and pack size for both yoghurt and drinking yoghurt. This Tropicana flavor will definitely draw attention and create a new group of consumers. Plus no other competitor products have come out with such thrilling flavor, therefore these would definitely appeal to those whom are bored of the old traditional flavours and are looking for new range of stimulation for their taste buds.
Presently, DLMI demarcation of area is by Central (Seremban, Pahang, Klang, Kajang, Petaling Jaya); 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 more developed areas are more particular towards living a healthy 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 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 yoghurt drinks 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 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.
Chilled products are very dependent on promotions, therefore for the short term goal, DLMI hope to successfully execute all promotions 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 these promotion plans by encouraging 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 [7]
In 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 key outlets with key SKUs;
These long term plan are also meant to be continuously conducted throughout each year to secure the share of business in the chilled market.
DLMI 360º activation plan is one form of marketing strategy 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.
DLMI will roll out a coordinated advertising campaign to emphasize 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 Lady’s yoghurt and changing to meet their 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.
DLMI will pursue the following public relations oriented programs: DLMI will put together a press kit showing L'Oreal's commitment to grow and serve the Dutch market. We will include key facts including our additions to the employment rolls and charitable contributions. We will look to host and/or sponsor 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 focus 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.
To 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.
Marketing Plan Dutch Lady Milk Industries. (2016, Apr 15). Retrieved from https://studymoose.com/marketing-plan-dutch-lady-milk-industries-essay
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