Permodalan Nasional Berhad Is The Second Largest Shareholder Marketing Essay

Permodalan Nasional Berhad Is The Second Largest Sh beholder Marketing EssayTo develop, produce and merchandise a broad err of reliable, inhering and nutritious dairy mathematical ingatherings that contribute to wellbeing and vitality of life.To recognize that know-how, theatrical role, dedication and leadership of our employees atomic number 18 the most tout ensemble important(p) assets to achieve our orchestrates.For generations, Dutch brothel haveer milk Industries principal rail line is to supplying fiber dairy and baby nutrition products to the nation. Today Dutch chick 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 decree and growing up milk to fruit juice and yogurt snacks. E precise product innovation that rapidly develops infant and child shapeula range is backed by extensive research both topic aloney and internation eachy.DLMI is the largest getr of topical anaesthetic fresh milk from the Veterinary Services Department. It excessively supports topical anaesthetic industries by apply 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 be prime considerations. In dividing 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 synopsis Critical Control Point) System to cover all its plants. Since it commenced manufacturing in 1963, DLMI has steady expanded its operations in Malaysia. Its chilled plant is champion of the most advanced(a) in South East Asia. partitioning 2.0 BUSINESS OVERVIEW propose 1 Total merchandise for Chilled perso nal line of credit1 pedigree DLMI (2009)As furnishn in Figure 1, the total chilled (total of take in yogurt, yoghurt drink and cultured milk) market is brassatically growing but at a very slow rate. T herefore, Dutch Lady is hoping to play a role in growing this respite 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 specially stabilizing with the females growing interest in getting slim through with(predicate) transaction or daily intake of nutritious yoghurt.Figure 2 Chilled credit line Volume Percent fester Share by Players2Source ACNielsen Malaysia (2009)DLMI is currently at third position in enclosures of percentage volume constituent for chilled business in comparison to Msia Milk, the market leader and Nestle at second. This is receivable to DLMIs limited chilled product line. MSia Milk, though only provides F resh and paltry Fat Milk, their best seller are the 2 Litres package size of it and therefore, in terms of volume and value they are still the market leader. Nestle on the opposite 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 cosmicger 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 zeal and flavours. This could provide DLMI the opportunity to capture the market through calculate groups and segmentation of the market which will be discussed later in the other sections. Moreover, by collecting enough information of the potency disciplines, DLMI could use the trade mix to help boost their gross gross sales and have a larger consumer base for the chilled market. In order to gel all these ideas into possible actions, the pre cedent would like to propose a bold move into introducing the Tropicana purport for all range and pack size for both yoghurt and drinking yoghurt. This Tropicana flavor will definitely draw attention and gain a tonic group of consumers. Plus no other competitor products have aim out with such thrilling flavor, therefore these would definitely appeal to those whom are bored of the old traditional flavours and are smell for raw range of stimulation for their taste buds.SECTION 3.0 TARGET MARKETFigure 3 gross sales Review for Chilled Product by Chain3Source BW (2009)As depict in Figure 3, fiend chain supermarket is the one with the highest sales value growth for chilled business and Tesco at second place. Hence, DLMI could organise the consumers from both these chains as the trend 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 describe 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 juvenile Tropicana flavor.Figure 4 Sales Review for Chilled Product by Chain4Source Dunnhumby (2009)Presently, DLMI demarcation of range 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 ruddy lifestyle.Figure 5 Average Mont hly Sales of Chilled Business by Area5Source BW (2009)Therefore, the target market that DLMI is looking at to grow their chilled market consider is through three divers(prenominal) target groupsMiddle income group which frequent hypermarkets or supermarkets at central, in the south and north region with basket size of active RM35 to RM40 per visitTeenagers age 35 and below whom are at the launch of their career and tends to emphazise slimming and natural beautyAdults age 35 and above whom are more health concious towards living a giganticer healthy life.Since yoghurts and yoghurt drinks are sort as convenience products as it is bought frequently and immediately at fairly low price with many point of sales, it is therefore considered a authority market which DLMI would like to nurture in hope that they could construct a loyal customer base as a platform for prospective consumers while at the same time educating these consumers about the importance of eating and staying healt hy. The Tropicana flavour would be able to cater to these group of health concious consumers because it is bounteous in nutrients from all the mix tropical fruits.SECTION 4.0 gigantic confines AND SHORT TERM GOALSSHORT TERMChilled products are very restricted on advancements, therefore for the short term goal, DLMI hope to successfully hightail it all advances planned throughout the year as depicted in Table 2. The selections of the promotion are during spanking seasons where consumers are more probably 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 progress Plan for Chilled Products6Source DLMI (2009)LONG TERMIn the long term however, DLMI is hoping to be able to intone the position further if the initial establishment succeed. These are the few long term actions that DLMI could considerFocus on key outlets with key SKUs leaning of only the top flavoursOperation support from chain supermarket to build business furtherConduct cross promo with any value added product seize additional space for greater visibilityImplementation of segmentation match to agreed planogramImplement trade schemes to drive distributionMount activities to replace competitor usersPromotional activities to reward loyal usersInduce trial through giving out free sample pack size.These long term plan are also meant to be continuously conducted throughout apiece year to secure the share of business in the chilled market.SECTION 5.0 merchandising STRATEGIESFigure 6 Marketing Above The Line 360 Activation7Source DLMI (2009)DLMI 360 activation plan is one form of marketing strategy to create brand awareness and ideally brand preference among existing consumers and perchance impertin ent users who will prefer a smart sort of enkindle taste. The awareness campaign will touch on all forms of media from online publicize to advertising on the shelf itself to news and ads.ADVERTISINGDLMI will straddle out a coordinated advertising campaign to emphasize the pursuit pointsDutch Lady yoghurt is getting better, with a new and refurbished new equatorial 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 their needs. Billboards, television, radio, and display signs will be special vehicles for this. About two weeks before introduction, our ads will channel from stressing our company watch 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 to begin with use magazines, rad io, and other mediums targeted at the under 25 aged crowd. aft(prenominal) 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 programsDLMI will put together a press rig showing LO originals commitment to grow and serve the Dutch market. We will overwhelm 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 change magnitude 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 strain 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 YOUR healthPRODUCT VIDEO* Please refer to attached flash video*SECTION 6.0 SITUATION ANALYSESGIANT S.W.O.T. ANALYSESGIANTCUSTOMER GIANT violenceSimpuissanceCHANELHypermarket encompassing distribution network with high number of throw ins. (Total 110 outlets, EM 10 outlets and PM 91 outlets)Giant operation team welcome in-store approaches on tactical promotions (priority giv en to top suppliers)Store layout with event area for in-store activities spot allocation for activities at Kids Playground.Issues at HQ-No yearly promotion calendar to be furnished to suppliers for promotion planning.No full assure over space allocation at store direct for promotions view 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 influenced 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 system of weights/turnover.Issues at Store Level-Some of the store buyers are wish of understanding of internal SOP and not discipline in rules of order - lead to replenishment issues at store level.Service problems of Chilled vendors to superma rkets/CSSupermarket polar retentivityGIANTCUSTOMER GIANTOPPORTUNITIESTHREATSCHANELHypermarkets low-spirited store productivity due to issues at DC and store level.Store expansion (5 hypermarkets 10 supermarkets) vocalise forecast with Giant in order to have smooth occupation to stores and improve forecast accuracy.Nestle is given priority by DC on storage and delivery to outlets (due to top-to-top agreement on sales target and incentives).Consistency in stock deliveries of competitors that helped their AV at store level and promotion execution.SupermarketSOS improvement by initiating plan-o-gram for CS/ Supermarkets and influence store buyers to allot 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 home after Cotra and FN.Strong brand equity.We are lack of reduce in Chilled compar ed to Ambient and no creativity in promotion activity.Our facing is less(prenominal) 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 secureCompetitors (Cotra and Nestle) are dominant in this category.RTEWe are No. 2 supplier in this category after Nestle.We are offered lower molding to Giant compared to other suppliers.Multipack promotion (Buy 4 at RMxx) to encourage bulk purchase. miniskirt road show for LF RTE and DKY in order to bring new excitement to shoppers.Stiff competition from Nestle-60% contribution to total salesDeep pocket and react fast to competition.Category captain.Dominant SOS at store level.Shine DKYContinual innovation from DLMI who has bullnecked market share in DKY segment.Creative to bring new things to shoppers,Lack of communication for benefits of putting green tea extract to the shoppers although its one of the key selling points.Based on TNS research, we are strong in retail 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 right shopper profile for flame 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 proven 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 enhance communication to the target shoppers.TESCO S.W.O.T. ANALYSESTESCOCUSTOMER TESCOSTRENGTHWEAKNESSOPPORTUNITIESTHREATSCHANELHypermarketTesco is well-positioned for further growth to be No. 1 Retailer confine 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 get the hang and influence over space allocation as category captain. capacity in supply chain management and strength. 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 intensity 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 indemnity is to be the right price on all comparable products versus the bench mark and to be the best value retailer.Tescos ability to gain customer insight, coiffure robust customer segmentation and deliver personalized marketing communication from its Club card loyaltyFacing difficulties on stocks replenishment to be influenced at store level as store b uyers are very dependent on system.The shopper behaviour insight gained from Tescos loyalty card data is currently used by Tesco in strategic decision-making, and to drive promotional activityTesco has developed great expertise in private denounce 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 position from HQ to store level on execution and operation issue to leads the smooth sufficeHave long term initiatives calendar plan (12 month cast initiatives calendar) in order to work closely with Tesco (eg, PG, Nestle and Dumex)Tesco is growing sharp 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 YoghurtLow F atNestle Fat Free, Marigold 0% Fat, FN Alive, Private adjudicate swallow 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 go in in milk campaignActionWhoBy WhenResourcesMeasuresTo maintain at least 3 times promotionKAM TMMac, July NovMktgIncremental of 80% 90%To participate in 3 major fair Milk For Life campaignKAM TMJunMktgAnniversary Milk For Life Campaign. Promotion generates about 200-400% growth, approx RM 700kTo explore carton salesKAMQuarterlyTM Mktg peculiarly 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 hold open 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.