...3. Analysis of the determinants of prices and costs in product value chains DAIRY PRODUCTS Analysis of the determinants of prices and costs in product value chains Overview of the dairy industry The dairy industry is a major agribusiness sector which has historically been largely production and supply driven: • the majority of milk production enterprises supply dairy manufacturing or processing cooperatives which have developed into large enterprises aimed at achieving the best overall returns from supplied milk; • major volumes of milk are converted into storable dairy products which are sold into available international markets; and • national milk production is highly seasonal to take advantage of low-cost production conditions (such as spring pasture growth). With the strong forces of globalisation, the industry value chain has in the past decade been highly exposed to demand factors and forces in export and domestic market segments. These have had a profound effect on the returns to the overall industry and the nature of competition through the chain. The most marked of these changes has been in the domestic consumer product sector. Since the early 1980s the industry progressively removed internal support and regulation of prices and supply, and focused on taking advantage of low-cost production conditions to become a major player in the world market for dairy commodities and dispose of larger volumes of product. The final phase of that deregulation – of pricing and...
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...Assignment 1: Product Assessment Foday Sesay MKT 100-Principles of Marketing Strayer University Introduction Milk as a dairy product is one of the most highly consumed product but it consumption in the market is dropping as compared to bottle water and other changing taste products. Barrett (2012 stated blame it on bottled water or changing tastes, but the sales of milk as a beverage have fallen t the lowest level in nearly thirty years and the US adults are no longer consuming the dairy industry iconic product. This is a fact as most people nowadays prefer water than milk and even many complain of stomach problems or improper indigestion. These are reasons best known to them but it seems that milk consumption, though it is vital in our life has considerable been dropping. Unless marketers could think of a better way to refine the product and add flavors or provide consumers with new and attractive product, the decline in milk consumption will continue. The target market for milk is adults and children. However, the dairy products do target a significant population of older people who need milk for many reason to strengthen their bones, add more vitamins, and for other healthy reasons. Barret (2012 pointed out that even in the milk-thirsty Great Lakes region, that is the leader in milk consumption are struggling with the downward trend gripping the dairy industry for many years. This trend has to be looked into from the perspective of the industry not redefining itself...
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...Emerging Trends in Business Strategy A Success Story of Mother Dairy Research Paper prepared by: • Rajeev Ranjan Post Graduate Diploma in Management, Jaipuria institute of Management, Noida Mobile: 09350864084 Email: rajeevranjan99@gmail.com • Rahul Bangabash Post Graduate diploma in Management, Jaipuria Institute of Management, Noida Mobile: 09953550067 Email: rahulbangabash@yahoo.co.in Emerging Trends in Business Strategy 2 A Success Story of Mother Dairy ABSTRACT Emerging Trends in Business Strategy A Success Story of Mother Dairy By Rajeev Ranjan Rahul Bangabash From chronic shortages of milk, India has emerged today as the largest producer of milk in the world nearing 100 million tonnes. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. By the end of 2007, the urban population is expected to increase by more than 100 million to touch 864 million in 2007 a growth of about 40 per cent. The expected rise in urban population would be a boon to Indian dairying.Presently, the organized sector both cooperative and private and the traditional sector cater to this market. In this booming period Mother Dairy is looking to take advantage of the opportunities which are in...
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...| 4 | Collaborative, Competition – Wholesaler, Dealer perspectives | 7 | 5 | Collaborative, Competition – Company salesperson perspectives | 8 | 6 | Collaborative – Company’s operations and advertisements | 11 | 7 | Our learnings | 15 | 8 | Online references | 16 | INTRODUCTION About Amul: Amul was formally formed on December 14, 1946. The brand name was derived from the Sanskrit word ‘Amoolya’, which means priceless. But some cite the name as an acronym Anand Milk Union Limited. Amul products have been used in millions of home since then. Today Amul is a symbol of high quality delivered at a reasonable price, of the creation of a vast co-operative network, of a triumph of the white revolution. And it serves as an established model for dairy development. In the early 1940s, the main sources of earning of the farmers of the Kaira district were selling of milk and farming. During that time, there was a high demand of milk in Bombay. It was mainly supplied by Polsen dairy limited which had a monopoly and was privately held. Those traders used to decide on the prices of milk and the farmers had no say in that. But the exploitation became intolerable and the farmers collectively requested Sardar Vallabhai Patel. He told them to establish a co-operative union, as an alternative to supplying milk to private traders. Morarji Desai intervened and formed a society for collection of milk in Samarkha, a village near Anand. Mr. Varghese Kurien showed main interest in establishing...
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... (c) Businessman (d) Service (e) Professional/self employed Total family’s income (per month)- (a) Below 8000 (b) 8000-16000 (c) 16000-24000 (d) Above 24000 1. Do you prefer packed food products to loose items for the following product categories? | | Always | Often |Sometimes |Rarely |Never | |a) Fast food | | | | | | |b) Grocery | | | | | | |c) Cooking oils | | | | | | |d) Medicines | | | | | | |e) Dairy products | | | | | | |f) Health drinks...
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...Nowadays in Lebanon, there are vast numbers of dairy products consumption daily, and there’s about 28 companies producing these products. As we know there are environmental and health problems in Lebanon, and people are always debating about products, which one is healthier or without artificial ext. Also there is respectively three leading dairy products producers, Taanayel Les Fermes, Libant Lait and Dairy khoury. These companies have been competing severely lately through media, offerings, widening area of coverage and distribution, and creating their own competitive advantage. However the most consumed product for the three companies are the 1kg packs of yogurt or “laban” in Arabic. 2) Objective: The objective of this paper is to know more about these 3 companies, study by numbers and qualities their 1kg pack of yogurt, and then choose the best between these 3 companies. 3) Companies Profile: a) Dairy khoury: Dairy Khoury is a company situated in Ain Al-Sindyaneh, Mount-Lebanon that manufactures a wide range of dairy products. The family has been into business since 1943 at a village called Baskinta producing in a small farm and distributing to relatives and friends, kept expanding until early 2000’s when a new production facility was built in Ain Al-Sindyaneh able to produce 10 tons of dairy products per day. Dairy Khoury became an official Lebanese shareholding company exclusively owned by the family members in 2007. Dairy Khoury knows no boundaries and has never stopped...
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...Human Behavior Organization Task 1: 1.0 Company information Arce Dairy Ice Cream i) Background of the company The manufacture of ice cream from fresh carabao’s milk and fruits was originally conceptualized by Don Ramon Arce, Sr. and Doña Carmen Arce in 1930. Its first plant, established in 1935, was situated in Novaliches, Quezon City. In 1938, demand for the ice cream was so high that the plant had to be moved to Lepanto St. in Manila, making it more accessible to the consumers. The existing plant at Selecta Drive in Balintawak, Quezon City under the stewardship of Mauro C. Arce, Sr. was established in 1952. In January 1990, the third generation of Arces outvoted the family of Mauro C. Arce, Sr., and the brand name Selecta Dairy Product was sold to RFM Corp.. However, the ice cream business and the dairy plant were retained by the family of Mauro C. Arce, Sr. lock, stock, and barrel. The Arce type of ice cream, the “all-natural” ice cream, has captured the hearts of Manilanians through the decades of its uniqueness and its old fashioned manufacturing process. Tenacious requests from prominent clients, captive loyal followers and food connoisseurs, demand for its return. In January of 1995, the dairy plant resumed operations, and the family of Mauro C. Arce, Sr. renamed the product “ArceDairy Ice Cream”. This name was so chosen because no other company can just call their product “dairy ice cream” unless the butter fat content comes from milk. Only carabao’s milk...
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...Mother Dairy, set up under the Operation Flood program in Delhi in 1974, is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India. Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, dairy whitener etc), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices). Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme. It is now a subsidiary company of a wholly owned company of the National Dairy Development Board (NDDB). Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice creams, Dairy Whitener, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level through its sales and distribution networks for marketing food items. Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. It is Mother Dairy’s constant endeavor to (a) ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers...
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...company in Vietnam, and in the last part we want to talk about our future plans. First, the structure. Let’s start with the company’s history with some significant events. As you know, in 1976, our company was founded under the name of Southern Coffee-Dairy Company, a subsidiary of the General Food Directorate and had six factories in operation, namely Thong Nhat Dairy Factory, Truong Tho Dairy Factory, Dielac Factory, Bien Hoa Coffee Factory, Bich Chi Powder Factory and Lubico. In 1992, the company was formally renamed Vietnam Dairy Company and came under the direct management of the Ministry of Light Industry after introducing powdered milk, cereal with milk powder at the first time in Vietnam in 1988 and launching UHT milk, spoon yoghurt to Vietnam market in 1991. At this time, we started focusing on the manufacturing and processing of dairy products. Specially, in December 2003, our company was formally converted into a joint stock company and changed its name to Vietnam Dairy Products Joint Stock Company to reflect its change in status. We are the leading producer of dairy products in Vietnam based on sales volume and revenue. Our products range from core dairy products such as liquid and powdered milk, to value-added dairy products such as condensed milk, drinking and spoon yoghurt, ice cream, and cheese. We have the largest and leading distribution network in Vietnam, so we leverage it to introduce new...
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...Mother Dairy Plant Report – Industrial Visit to Mother Dairy plant Introduction: Mother diary is a multi product company, dealing primarily in dairy products, which sprang into existence in 1974.It works under the aegis of National Dairy Development Board of India (NDDB).It’s one of the key players of the Indian dairy industry. It’s products include liquid milk, flavored milk, ice cream, lassi, dahi, mishit dahi, white butter, table butter, ghee, cheese, edible oils (under the name of Dhara),UHT milk and Fresh fruits and vegetables (under the name of Safal). Market size and competition: Current market value of drinking milk and related products in India stand at a whooping sum of approximately 400 billion. Milk products have shown a steep growth due the increase in the number of health conscious individuals in urban as well as rural areas.Further the introduction of products such as soy milk,flavoured milk and probiotic yoghurt has helped in forstering the increased rate of growth. Although Amul is still remains the big shot in Indian dairy industry but other leading companies like Nestle,Reliance,Danone and Go have also surfaced with some of their revolutionizing products. In all of these competitions,as far as the geographical distribution is concerned,Mother Dairy holds its leading position in Delhi NCR region with around 69% of market share. Source: Euromonitor International March 2013 “Drinking Milk Products...
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...famous food and beverage groups in the world with its headquarters in Paris and 90,000 staff members worldwide. Group Danone is a Global Fortune 500 company with a long history and large size. Danone develops its business across over 120 countries focusing on three core categories: fresh dairy products, biscuits (in which it ranks second worldwide) and beverages (in which it ranks first worldwide). Founded in 1966, Danone has followed an active expansion strategy throughout the world since the 1990s. In less than 40 years, Danone has become a giant of the food industry, owning many famous international brands such as Danone, LU, Evian, and more. Since the end of the 1980s, Danone began to develop the production and business in China extensively by investing in building factories. Now, the main business of Danone in China concerns yogurt, biscuits and beverages. Danone has 70 factories in China, including Danone Biscuits (in Shanghai, Suzhou and Jiangmen), Robust (in Guangzhou), Wahaha (in Hang Zhou), and Health (in Shenzhen). The products are not only sold in China, but also exported to different countries. Four brands under Danone Danone: the leading brand worldwide for fresh dairy products; Danone represents almost 20 percent of the international market. Danone is present in 40 countries worldwide. Evian: the best selling mineral water brand, with 1.5 billion bottles sold every year. Present in 125 countries across five continents. Lu: the second brand worldwide, the...
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...Hangyo Ice Creams Pvt. Ltd., is a flagship company of Srikrishna Group, which is a Rs.100 crore entity with interests spanning various sectors like milk and milk products, ice creams and fresh foods, restaurants and hospitality. Srikrishna Group has the distinction of being the first organized private sector venture in milk industry in Karnataka state. Continuing in the same pioneering tradition, Hangyo Ice Cream Pvt. Ltd., is also Karnataka’s first private ice cream manufacturer in the organized sector. Incorporated in 2002, Hangyo, is today a leading ice cream brand loved by consumers across all segments of society in its rapidly growing market spanning the states of Karnataka, Kerala and Goa. ISO Certified Hangyo Ice Cream Pvt. Ltd., is a ISO 22000:2005 certified company for both its divisions - Dairy and Ice Cream. Hangyo is probably the first ISO certified company in private sector in ice cream manufacture in the state. MARKET REACH Hangyo ice creams are offered in a variety of presentations like cups, cones and candies. At present 138 varieties of ice creams are available in these novelties and also in larger take home family packs. Hangyo Ice Creams are presently marketed throughout Coastal Karnataka from Mangalore to Karwar and in major cities of the state like Bangalore, Mysore, Hubli, Dharwad, Belgaum, Haveri, Gulbarga, Bagalkot, Bijapur. The small towns like Athani, Navalgund, Naragund, Ranebennur, Gadag...
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...2. Competition 12 C. Marketing Mix C.1. Strengths and Weaknesses 13 C.2. Marketing Objectives 13 C.3. Product 14 C.4. Price 14 C.5. Promotion 15 C.6. Place/Distribution 15 Conclusion 15 References 16 Introduction In this course, we are called to develop an international marketing plan to export a product produced in Greece and specifically greek yogurt in France. We should study the procedures that a manager should follow in order to organize this plan. At first, it is important to evaluate the outlook of France, focusing on cultural and economic environment, relations between Greece and France, legal and political risks and forms under which trade could be performed. The examination of country – product fit, is followed by market analysis, meaning the description of market and profile of the buyers or trends related to the dairy products as well as the distribution of the product and inspection of competitors. It is really crucial to make some conclusions after this research, in order to be able to identify strengths and weaknesses of our own product, set some objectives and determine the appropriate product feature, also in terms of...
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...investment forces companies to produce at full capacity * Product differences: Dairy products are perceived as commodity thus differentiation is based on price…. Price/ service competition * Exit barriers: High exit barriers for companies thus their presence fosters industry rivalry Threats possessed by new entrant: MEDIUM * Economies of scale: Industry experience cost advantage with expansion * Capital requirement: The investment required in the industry is huge for setting up of factories * Access to distribution channel: Difficult for new entrant to gain access to distribution channel * Government schemes: Different government schemes such as Intensive Dairy Development Program, Dairy Entrepreneurship Development Scheme etc. to promote milk productivity, creation of modern dairy farms. * Local retailers: * Customer Loyalty Bargaining Power of suppliers: LOW * Switching Costs: Low switching cost as companies can easily switch from one supplier to other * Supplier Concentration: Presence of large number of suppliers (dudhwallas) * Threat of forward integration: Suppliers are rural people thus least likely to collaborate and enter into distribution of dairy products * Product differentiation: Raw material (milk) provided by all suppliers are of same quality. Threat of Substitute: MEDIUM * Price/ Performance Ratio: Substitute products are available for milk products (flavored milk, Ice-cream) and have low price/performance ratio...
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