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Swot Analysis Of Fonterra

Decent Essays

1. Introduction
The purpose of this business report to be made is to specifically analyse a multinational company on how well they use their marketing mix strategy from their original home country and the foreign market that they venture in.
In this report, a well-known multinational company from New Zealand called Fonterra will be analyse on how well their marketing strategy are and how they adapt their strategy and product to the new market they venture into. To analyse their marketing mix strategy, the home country that is New Zealand will be compare to the China market.
Fonterra are formed in 2001, by the merger of two big dairy companies in New Zealand that is the New Zealand Dairy Group (NZDG) and Kiwi Co-operative Dairies. Fonterra received its daily supply of milk from around 10,500 farmers in New Zealand that are also their shareholders. According to Fonterra, (2016), it has three divisions New Zealand Milk, Fonterra …show more content…

According to Fonterra: Our Strategy (2016), since the global demand for dairy product are growing, they will take these opportunities to grow their existence especially in the growing emerging markets.
The main marketing strategy for Fonterra is to take the opportunity in the growing demand of dairy product in the world especially China. Fonterra sees there will be growing demand of 7% in China by 2020 (Fonterra, 2016).
2. Pricing
A statement provide by Fonterra, (2016), that 95 per cent of New Zealand total export are of milk production and Fonterra cater 87 per cent of that. So there is no exact ‘market price’ for milk around the world. But there is instead a price called the ‘farm gate price’ which are used worldwide to calculate the price of the milk base on the price from which the milk are supply from the shareholders to Fonterra which also excludes any costs

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