Creating, Communicating, And Delivering Value Of Milk Powder: A Case Study On Dutch Lady Milk Industries Berhad

Background of the Company

Describe creating, communicating and delivering value of milk powder?

Dutch Lady Milk Industries Berhad is a Malaysian Company that is engaged in the manufacture of the dairy products and it well listed on Bursa Malaysia. The current product of the company involves growing up milk, pasteurized milk, UHT milk, sterilized milk, family powdered milk and low fat yoghurt. The company holds around 40% market share in Malaysian dairy industry. Dutch Lady Milk Malaysia offer large range of products to their customers and provide quality milk product. The factory of the company is located in Petaling Jaya and employs almost 600 Malaysian. The website of the company is www.dutchlady.com.my. The company targets mostly children and toddlers and family. The company supplies their products under different brand names such as Dutch Lady, Dutch Baby, Friso, Frisolac, ActivGold and Joy (Dutchlady.com.my, 2015).

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The company targets those customers that are in need for their product and that can help in increasing the income of the company. The company segments their market by grouping different customers into segments that holds similar needs. The company majorly targets the demographic segmentation so that their product Friso can be reached to the customers. The major targets of the company are children and family and old people. The Friso focuses on the major section of the society (Cdn.aphca.org, 2015).

Segmentation Variables (Friso)

Age

Kids and Female

Income

Spending Patterns

Benefit

Age: The Company targets age group from children to adults. The Dutch Milk has different dairy products brands for children and adults. For children that fall under the age group of 1-3 and 4-9 company offers Friso Gold 3 and Friso Gold 4 (Gebauer, 2008).

Source: www.dutchlady.com.my/en/home.asp

Kids and Female: The Company provides milk products to both male and female so that they can use the milk product for their purpose. For meeting the requirements of mummy’s, the company supplies Frisomum Gold for the breastfeeding and pregnant mums (Ylimaki, 2014).

Income: The Company segments the market on the basis of income as well so that all income group people can afford the dairy products. The Dutch Lady Friso Gold 4 is highly priced at RM 61.59 per 900g packets which are easily available by the people having higher income. On the other hand, for targeting low income group customer, company provides Dutch Lady Friso Mum Gold is offered at price of RM 50.99 for 900g (Becker et al. 2009).

Spending Patterns: The Company also considers the spending behavior of the consumers. The kids that are suffering from bad bacteria in their digestive system, the company provides Friso Gold 3 and Friso Gold 4. On the other hand, the female customers that search for improving digestive syetem, company provides Frisomum Gold Milk that contains Probiotic, Sa, DHa and SA and makes available in different flavors such as mixed berries, strawberry, mango, etc. (https://www.youtube.com/watch?v=Q0f-TjUfGjs)

Source: www.dutchlady.com.my/dutchladytest/en/home.asp?page=brand&subpage=view

Benefit: The Company provides dairy Friso brand products to customers that seek benefit from the product. For instance, if a parent thinks that giving milk to the children can help in child’s brain development. Therefore, in such case, company provides Friso Gold 3 and 4 growing up milk which contains DHA, AA and SA nutrients for children’s brain development (Baker et al. 2009).

Target Market

Source: www.friso.com.my/goldclub/register_step1

Reasonable Price: The customers that seek for reasonable price for the milk products, company delivers the product that can best provide value for the money to customers. The Company prices the product that can be easily afforded by the people.

High Nutrient Milk product: Dutch Lady Milk provides the Frisomum Gold product to the customer that requires healthy nutrients in order to maintain their health structure. Therefore, in this case, customers can prefer friso brand to meet their needs (Palmer, 2012).

Health growth: The customers seek for the product that contains high nutrients so that their digestive system can be maintained. On the other hand, the person for maintaining the health quality of pregnant woman they search for better and healthy milk products. Therefore, Frisomum Gold milk supplement can be effective as it comprises Probiotic, Prebiotic, AA, DHA and SA. (https://www.youtube.com/watch?v=7ba69MH4nh4)

Convenient Location: The consumers mostly buy the products that are close to their residential area. Therefore, in order to meet such requirements, company has set up number of outlets in different locations so that it can be easily accessible by the consumers (Brodie et al. 2009).

The Dutch Lady Milk uses different promotional strategies to promote their Friso brand products. The company uses various television commercials to make people aware about their different dairy product and its benefits. On the other hand, company is active in social media such as Facebook in order to reach out to the large customer base. The company continuously post about the Friso information or any event they want to organize for the consumers (Bolton & Lemon, 2009). Further, in order to position their product strongly in the market, the company regularly seeks feedback from their customers so that necessary changes can be made in the production. Apart from that, company focuses more on the quality and low fat products so that they can remain ahead of their competitor and increase their market share. Therefore, Friso Brand products are positively positioned in the minds of the consumers (Carpenter & Fairhurst, 2009).

      

Figure 1: Perpetual Mapping

From the above diagram it can be understood that Friso Gold Milk is ahead of their competitors such as Dumex Gold Milk powder and Farm Fresh Milk. The Dutch Lady Milk follows penetration strategy in order to lead the market. On the other hand, Farm Fresh I using economy pricing strategy to attract the customers. The Friso mil product is easy available via online or retail store whereas its competitors are less available in the market (Cannon & Homburg, 2008).

The Dutch Lady Milk adopts product innovation on continuous level to provide nutritious Friso product to consumers. On the other hand, company buys local fresh milk every day so that health and quality product can be provided. The company engages celebrities and focuses on containing less amount of sugar in products that helps in separating company’s image from their competitors (Palmer, 2012). On the other hand, company is using re-sealable packaging to store the Fisomum Gold and Friso Gold 3 and 4 Milk. Further, the company is using packaging or bottles that can be disposed easily. Apart from that, in order to maintain their class in operation, Dutch Lady Milk is following good manufacturing practices, Quality System Management (ISO 90001) and Hazard Analysis Critical Point so that sustainable environment can be achieved (Boulding et al. 2010). The dairy product of the company helps in improving the health structure of the people that has a deficiency of protein or nutrients. Moreover, it offers low fat products for the health conscious people. The product of the company as different as it contains, DHA, AA, SA, Prebiotic and Probiotic which is normally not found in many dairy products. Moreover, company uses the image on the packaging that can relate with the consumers (Ifad.org, 2015). The company conducts various programs such as World School Milk Day Celebrations that help in building image of company. The products are rightly placed in the counters that help the customers to independently understand the price and other features of Friso brand. On the other hand, each product packaging is different so that customer can easily recognize the product (Dutchlady.com.my, 2015). (https://www.youtube.com/watch?v=6qnfq2x_VA0)

Values Demanded by Target Market

Source:  www.friso.com.my/main/terms_use

Product: The Friso products that are offered by the company are Friso Gold 3, Friso Gold 4 and Frisomum Gold.

The Friso Gold 3 is a growing up milk that is provided to kids between 1- 3years whereas Friso Gold 4 is given to children between 4-9 age groups. The product helps in strengthening digestive system and build resistance of natural body. The product contains nutrients such as DHA, AA and SA for brain growth. (https://www.youtube.com/watch?v=UBw6rlMiOT4)

Source: www.coloribus.com/advertisers/dutch-lady-milk-industries-bhd/

The Frisomum Gold is offered to pregnant female and breastfeeding mums as it contains AA, DHA, SA, Probiotic and Prebiotic nutrients that helps in maintain the health of females.

Source: www.coloribus.com/advertisers/dutch-lady-milk-industries-bhd/

Price: The Company follows penetration pricing strategies for different Friso brand product so that it can be availed by the consumers.

Products	Price
	2013	2015
Friso Gold 3	RM54.90	RM 77.70
FrisoGold 4	RM 50.50	RM 71.00
Frisomum Gold	RM 50.99	RM 71.60

The different price has been set due to difference in their ingredients while producing. The taste of each product is different so that the price has been fixed so that it can match up with the taste of consumers (Ifad.org,. 2015).

Promotion: In order to promote the product, company used social media such as Facebook to reach out to customers so that they can be attracted. Company uses the print advertising media to deliver information about the different ranges and their benefits. On the other hand, company started Sugar Reduction Campaign so that consumption of sugar can be reduced to 40% and stopped their production of sweetened condensed milk so that people can remain healthy. Moreover, company distributed brochure mentioning about the different flavors of their product, price and benefit associated with products (Alvarez & Casielles, 2008).

Place: The Company has located their stores in different regions of Malaysia such as Perak, Petaling Jaya, Kuala Lumpur, Malacca, Pahang and other regions. The company has almost 65 stores in Malaysia that effectively serving the people (Munksgaard et al. 2012).

People, Process, Physical Evidence: The Company has almost 21000 employees in 25 nations that help in producing healthy and quality dairy products. The company has strong supply chain management that regularly assists in production and the distribution of Friso products to consumers. Lastly, the company is able to provide comfort and soothing environment to the customers (Dutchlady.com.my, 2015).

References

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Becker, U.J., Greve, G. & Albers, S. (2009) The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention. International Journal of Research in Marketing, 26(3), 207–215.

Bolton, R. N. & Lemon, K. N. (2009) A dynamic model of customers’ usage of services: Usage as an antecedent and consequence of satisfaction. Journal of Marketing Research, 36, 171–186.

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YouTube,. (2015). Online Shopping for Dutch Lady Milk Powder 123 Growing Up Milk (Milk) | Hanyaw ! Online Shopping. Retrieved 12 January 2015, from https://www.youtube.com/watch?v=6qnfq2x_VA0

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