Analysis of Marketing Environment

Analysis of Marketing Environment

Micro Environmental Factors:

It is the closest one to the company’s status. Before making decisions, the company must go through the micro factor in order to analysis the level of customer loyalty, suppliers or distribution, what the competitors do in market, interest group and intermediaries.

Strengths and Weaknesses analysis

Strengths

Despite of its brand name, Dutch Lady is known and recognized for meeting international quality standards by acquiring MS ISO/IEC accreditation. Meanwhile, Quality Control Laboratory (QC Lab) of Dutch Lady Milk is accredited under Skim Akreditasi Makmal Malaysia (SAMM) for meeting requirements of management and technical as well as operation compliance with Quality Management Systems MS ISO 001. This Certification assures consumers that Dutch Lady’s Products are safe and nutritious. For this company, food safety is always prioritized as it certifies with Hazard Analysis Critical Control Point System (HACCP) and Halal Standards. Moreover, Dutch Lady allocated RM 20 million of capital in improving food safety and capacity among others, These accreditations make consumer more confidence about their products hence increases trustworthiness of Dutch Lady.

Weaknesses

The price of Dutch Lady UHT Kid is higher than other UHT milk product in the market, the reason is because Dutch Lady may be using the high quality ingredients for their production of Dutch Lady UHT kid. Automatically, the cost of production will be higher, this may cause the consumers to purchase the substitute of the Dutch Lady UHT milk. Consumers prefer high quality products with reasonable price. Therefore, consumers tend to look for other UHT milk that offers lower price. For example, Dutch Lady UHT milk cost RM7.99 for 1 liter in market. Whereas for the competitor, brand called “Goodday”, cost only RM5.00 for 1 liter as well.

Besides that, Dutch Lady UHT Kid has lack of awareness from parents. Dutch Lady should invest more on advertising about their Dutch Lady UHT KID on television, newspaper or magazines. This is because Dutch Lady UHT Kid is the first UHT milk in Malaysia and the parents have not much knowledge about it. Internet may have provided full information about it but there are not much parents who purposely look for the UHT milk information online. Nowadays, parents often let their children to be taken care by the children’s grandparents. Mostly our grandparents do not know how to surf the internet.

Next Dutch Lady Milk Industries Berhad has poor checkups on its own product. Some consumers found that the expiration date of the Dutch Lady milk is typed wrongly. For example, today is 1 March 2016 and the expiry date typed 11 March 2016, but the taste of the milk turned sour. Still, Dutch Lady Company has distributed the products to the without checking the products properly. Expiry date is very important to consumers because it may cause food poisoning and the reputation of the company may break down,

Lastly, too narrow product offered. Some of the other brands provide flavored yoghurt drink, but Dutch Lady only focuses on milk and yoghurt products. The company can start up wider range of dairy products such as ice cream, butter, cheese and so on. Dutch Lady does not need to be worried for producing new line as they are already a well-known brand and is trusted by the consumers.

Opportunities and Threats analysis

Opportunities

Dutch Lady has the market opportunity to expand its business by offering healthier product to the market. According to Rahul Calaco, managing director of Dutch Lady, they made a commitment to reduce the consumption of sugar and will make most of their product without sugar or in low sugar level. Dutch Lady wants to improve the nutrition intake of children include all Malaysians. Milk is the beverage with the most nutrition and is good for health. However, the market faces a challenge which the average consumption of milk by Malaysians are less than the recommendation average consumption by World Health Organization.