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
With the continuous Positive growth for the of our economy (GDP growth and one of the fastest growing consumer spenders) it will become a factor in AMC’s increase in sales because Filipinos will become less price sensitive in buying their milk products they are willing to spend more on perceived benefits and the level of being price conscious are slowly becoming relaxed and they are more willingly to spend in addition Alaska’s products are affordable. The rise of the “Lifestyle on the go and healthy consumption” trend among Filipino consumers also give rise to Alaska’s milk products with their products having ready to drink properties and also milk itself naturally has healthy benefits to the body of an individual. The continuing effects of El Niño in the country have positive and negative effects for Alaska milks products. The positive effect is an expected increase in their canned evaporated milk products which is used by Halo-Halo makers in our country especially during hot season. The negative side of this phenomenon is we all know whenever the temperature is high milk products are easily to be spoiled. The regulation of the Government to Junk food drinks (soft drinks and artificial juices) gives rise to the milk product as a healthy alternative to the said regulated drinks. The Government’s regulation on breast milk feedings can be a threat to manufacturers of
Developing strategies in relation to any application of marketing suggest a marketer’s ability to comprehend and align business practices with the need of the consumer and business simultaneously. Strategies present challenges whether domestic or international markets are the emphasis. The ability to set customary prices, have market presence, encouraging advertisements and publicity, understand the competition, develop accurate communication, a complete SWOT analysis including domestic and international markets, and customizing the target market, present boundless opportunity that consumers appreciate and market recognition. At each stage of
This course reviews the organization for international marketing, foreign demand analysis, product development and policies, trade channels, promotion policies, pricing, and legal aspects. Emphasis is on development of effective international marketing strategy addressing the major global market areas (Europe, Africa, Asia, and the Americas).
However, because of the tariffs the government has placed on imported dairy products and the supply management system in place, Canadian dairy products are priced much higher them the world price. Therefore, if Canada opens up to free trade, these companies will have to lower their dairy product prices in order to be competitive. For some farmers, this may mean they can no longer afford to produce milk. The reasoning behind this is that as the supply increases, the price has to fall in order for supply to equal demand and the market to be at equilibrium. Also, because there will be more players in the market, the price can no longer be controlled by the producers but will be controlled by the market. Therefore, Canadian farmers will find it very difficult to compete in a world
Canadian based company, Saralyn Mills, is in need of a new marketing strategy to repair the current shortage of sales in Quebec, Canada. According to the case study, the Quebec and Ontario markets account for 69 percent of the company’s sales in Canada. Currently, Saralyn Mills does not have an effective strategy in place for the market of Quebec. The company’s current goal is to implement a global standardization strategy, which is focused on keeping a set marketing strategy the same for every location. It is up to the marketing manager, Nicole Vichon, to come up with a new and separate marketing plan for Quebec. Even though this would be a major policy change from the current global strategy of Saralyn Mills, case facts prove it could be very effective.
In the business of dairy farming, there are two key drivers: quality of milk and the health of the cows. On large, industrialized dairy
The marketing mix is a business tool that consists of four p’s, which are price, product, promotion and place. The marketing mix is useful in many different ways; this essay will analysing how the marketing mix is useful as a tool of analysis and how it will benefit the product. E. Jerome McCarthy, who was known as an American musketeer created this term ‘marketing mix’ in 1964 (van Waterschoot and van den Bulte, 1992) However in 1981 the four p’s had been extended to the seven p’s by Booms and Bitner (Vliet, 2013) The additional p’s, which have been added, are people, processes and physical evidence. The seven p’s have a great impact on the marketing side of a business because it helps businesses; plan every factor in the marketing prospect of the business.
“To be the leading providers of affordable nutrition by offering families and children with a wide range of nutritious and high quality dairy products.
Many now are becoming more and more health conscious and wanted to stay healthy or free from any diseases. However, there are thousands of dairy products globally therefore tight competition cannot be taken for granted. Aside from the known nutritional fact it can give, the company must have a solid plan as to how they can sustain their business. Advertisement for instance is one of the well used method that every company utilize to get the public attention. Some uses the internet to advertise their product and to make it more convincing, others hired and paid a famous artist to endorse it. Pay attention too, to the overall look or packaging of the product. There are some consumer that based their choice to the packaging of the product they buy. Furthermore, companies can actually collaborate to different wellness company that can tie up their product to their health program. Example, a maternity clinic, the doctor can recommend and prescribe the maternity milk to the pregnant woman. This work too, to a neonatal care where they can suggest the milk. Lastly, the biggest advantage you can make is to ensure the affordability of the product. Review the company's supply chain flow, determine which part of it you need to revise and reconstruct by doing such process you are maximizing your resources by not sacrificing the quality and most important of all is the price of your
A good marketing strategy is a pillar of a successful business. They play a big role for introducing the products to the world and without good promotion, the brands could not survive for longer times. These are types of strategies that could be implemented by Caffe’ Vergnano in Finland.
When external marketing becomes increasingly more important and successful for the business, they will begin seeking new sources of growth and profit. New countries serve as new markets, thus international marketing begins. International Marketing is approached by concentrating product and promotional strategy to a given foreign market. Furthermore, an international marketing firm has polycentric orientation with emphasis on product and promotional adaptation in foreign markets whenever necessary. They make strategic decisions that are tailored to suit the cultures of the foreign countries. The company may establish an independent foreign subsidiary in each and every foreign market it services such efforts are also called multi-domestic
Marketing play a vital role in the success of every company. Burger King use different market strategy to promote their business in New Zealand.
Submitted By: Submitted To: M.Umair Sheikh Mam. Anushey Reg# NI-F7-BBA-212 3rd Semester Date: 21st October, 2008 Introduction: Marketing Mix is a major concept in modern marketing and involves practically everything that a marketing company can use to influence consumer perception favorably towards its product or services so that consumer and organizational objectives are attained, i.e. Marketing mix is a model of crafting and implementing marketing strategy. There are four P’s in marketing mix which are: 1. 2. 3. 4. Product Price Place (Distribution) Promotion. SONY Corporation Sony Corporation is a multinational conglomerate corporation headquartered in Tokyo, Japan, and one of the world 's largest media conglomerate with revenue of
The following report will provide an overview of China Dairy Corporation (CDC). Outlining briefly who they, how they go about their business as well as seeking to provide context for the industry they compete within.
Fonterra is a company which deals with the all kind of dairy products. It is saturated in New Zealand. It is the largest organisation of New Zealand which deals with the all kind of dairy product. It works with others country to. It deals with the import and export of different dairy products all over the world like in Australia, Japan. Fonterra has a turnover of 17 billion US dollar. It has a wide variety of dairy products like milk, curd, yogurt, cream and many more products. Fonterra is found in 2001. It is the New Zealand largest milk selling company.