Dutch Lady Milk Industries Berhad is a leader in the quality branded dairy concern in Malaysia. Dutch Lady Industries Berhad was incorporate in 1963 and was the first milk company in Malaysia to be listed on Bursa Malaysia. Royal FrieslandCampina, the parent company in the Netherlands is a Dutch transnational corporation and one of the largest milk companies in the universe that produces and markets natural, alimentary and high-quality dairy merchandises and ingredients.
Dutch Lady Malaysia foremost established itself as a maker of sweetened condensed milk. The company merchandises are all “ Halal ” certified. Every merchandise invention in our quickly developing baby and kid expression scope is backed by extended research both locally and internationally. Now, Dutch Lady expands their market of turning up milk merchandises. Dutch Lady is the first company introduces a turning up milk pulverization specifically formulated for kids from ages one to three. Dutch Lady 123 and 456 AIDSs in spread outing kid attending span for better acquisition experience, it can besides assist in encephalon development because it with five times more docosahexaenoic acid ( DHA ) .
The vision of the corporate is “ To farther beef up our place as the taking dairy company, driving growing ” . Besides, the mission of the corporate stated as “ Helping Malaysians move frontward in life with sure dairy nutrition ” . This means that Dutch Lady will supply the best nutrition milk in a broad scope. Besides, corporate spent more than 50 old ages in Malaysia, turning up with the state and assisting the state to growing up healthy. The aim is to offer the best ego and calling promotion to all households by utilizing the key to their phenomenal growing. The mark clients are kids and households because they are concern on wellness.
2. THE Selling MIX STRATEGIES
2.1 Merchandise
Merchandise is a package of physical, service, and symbolic properties designed to fulfill a client ‘s wants and demands. Dutch Lady merchandises are consider as consumer merchandises as they are destined for the usage by ultimate consumers. This several merchandise are consider as a convenience merchandises that consumer want to buy often, instantly and with minimum attempt. Dutch Lady hold different merchandises such as Low Fat Yoghurt, UHT milk, sterilized milk, pasteurized milk, cream pitchers, joy juice, and turning up milk. ( REFER PICTURE 1 )
In 1984, the trade name name was changed from Dutch Baby to Dutch Lady for merchandise placement grounds. Besides, trade name has powerful influence on consumer behaviour. In 2002, Dutch Lady won the trade name equity awards for liquid milk. This addition likeliness client will acknowledge house ‘s merchandise and besides can ease enlargement into international markets. The type of trade name Dutch Lady used is maker ‘s trade name which the trade name name owned by maker itself. Dutch Lady has high trade name equity since there a high degree of consumer trade name consciousness and trueness. ( REFER PICTURE 2 )
Boxing decidedly plays a critical function to organize portion of the merchandise, other than functioning the basic map of protecting the merchandise. Dutch Lady has bear in head that they must function the cost-efficient packaging, this is the ground why they use biodegradable and reclaimable stuffs to react to client penchants every bit good as cut downing the cost. Dutch Lady ever ensures that nutrition for verve through healthy life styles. So, Dutch Lady changed its trade name image and packaging with the new corporate ticket line “ Get ready for life ” . ( REFER PICTURE 3 )
As a market leader, Dutch Lady has to set in attempt to make and market high quality merchandises to fulfill consumers ‘ demand. The company believes that in merchandise invention, they put more attempt strives to better its procedures in order to present alimentary merchandises of high quality to its consumers. The quality of the company ‘s merchandises is paramount. Therefore, a quality control and quality confidence are premier considerations.
Every merchandise being launched in Dutch Lady has to see merchandise life rhythm. There are four phases such as debut, growing, adulthood and diminution. Although the merchandise are non wanted to be long lasting in the market, but it is require to gain at least some net incomes. If the merchandise is in diminution phase, publicity scheme is really of import to keep it in the market. If the gross revenues bead continuously after the attempt put, so it should be taken out from the market and establish a new merchandise.
Dutch Lady affect in new merchandise development by adding new merchandise in order to go on thriving as other points reach the ulterior phases of merchandise life rhythm. Invention has been the driving force behind the growing of Dutch Lady Malaysia for the past 50 old ages, and it will go on to be that manner as they lead the squad into the following coevals of consumers.
2.2 Pricing
Monetary value is the most of import to accomplish ends in an organisation. Harmonizing to Kurtz and Boone ( 2012 ) , pricing scheme trades with the processs of puting profitable and justifiable monetary values. Pricing aims is used to give way to put pricing of merchandise in a company. Pricing is of import so that it must see some factors and the aims of merchandises or trade names. Selling director decide the pricing aim before the existent monetary value was set because it is a guideline to develop and pull off selling schemes. Dutch Lady used volume nonsubjective as their pricing aim. Dutch Lady chief aim is to maximise their gross revenues and acquire a high mark return in their concern since they are the market leader. Dutch Lady applied cost-plus pricing which set monetary value that cover cost with mark net income. Dutch Lady should go on to increase and spread out their gross revenues every bit long as with their entire net income do non drop lower the minimal return acceptable which as to their net income aim.
Demand and supply in the market besides the finding of puting the market monetary value. The environmental factors must be discovered and it must understand probably the rival actions and understand the legal restraints. There are three pricing schemes such as planing pricing scheme, incursion pricing scheme and competitory scheme. Dutch Lady used incursion pricing scheme. Dutch Lady put comparatively low monetary value of their merchandise in the market so that it secured market credence. They besides wish to pull a big figure of purchasers so that it can “ perforate ” into the market deeply and rapidly.
Dutch Lady used psychological pricing like uneven pricing. This type of pricing policy based on the belief that certain monetary value or uneven figure merely under unit of ammunition Numberss to do goods more appealing than others to purchasers. Dutch Lady used promotional pricing schemes in selling their merchandises. The merchandises are sold under a lower-than-normal monetary value temporarily as type of selling scheme. This type of scheme must be managed carefully so that consumers satisfy with it. This pricing scheme is to maximise gross revenues at a short period of clip or to place their merchandise in consumers ‘ encephalon. Dutch Lady applied price reduction schemes such as trade price reduction to the retail merchants and jobbers.
2.3 Placement
Placement scheme is known as distribution scheme. It shows the distribution channel of how the merchandises or services acquiring to concluding consumers. Dutch Lady merchandises are Fast Moving Consumer Goods ( FMCG ) . Dutch Lady Milk is categorized under basics goods which is necessity for human. Dutch Lady sells their merchandises utilizing intensive distribution. It is distribution of merchandise through all available channels. This type of distribution is convenience for consumers and the monetary value is kept low.
Retailing channel
Manufacturer i? Retailers i? Consumers
Retailing includes all the activities that involved in selling merchandises or services straight to the concluding consumers for personal or non concern usage. In merchandise line categorization, Dutch Lady distributes merchandises through supermarkets, hypermarkets, and convenience shops. These retail merchants normally sell assortment of goods, available of high volume goods, low cost and convenience. The illustrations are Cold Storage, Tesco and Giant, 7-Eleven and 99 Speedmart.
For case, Tesco acts as the retail merchant and they get merchandises from Dutch Lady. Tesco acquire the merchandises in big measures from maker. So they will put a comparatively low monetary value in the market for gross revenues since price reduction is given by maker. They play an of import function to bulk-breaking the merchandise and sell in little measures in the market. So this is more convenience to the targeted clients and can fulfill their demands and wants. The retailing channel helps to bring forth higher net income. It is besides really of import for the retail merchant to understand demands and penchants of mark market. The retail merchants need to hold follow-up stairss because they are the mediators between maker and concluding consumer.
Wholesaling channel
Manufacturer i? Wholesalers i? Retailers i? Consumers
Wholesaling includes all activities involved in selling goods or services to those purchasing for resale or concern usage. Dutch Lady did non supply wholesaler map such as repositing, supplying services and making public-service corporation.
2.4 Promotion
Promotion plays an of import function in hiking up a merchandise image and making demand for it in the market. Promotion is bring forthing a quality merchandise, pricing it beautifully and doing it available for the mark consumer Promotion is the communicating with clients, provide information to help consumer to guaranting client satisfaction, demands for personal or non-personal communicating with the mark clients to construct up a relationship with them. Dutch Lady used different types of publicity schemes in order to pull client.
First, Dutch Lady used advertisement scheme. It is non-personal communicating paid for by a clearly identified patron advancing thoughts, merchandises or organisational which can be done through telecasting, wireless, newspapers and magazines. Current advertisement mottos states that Dutch Lady is “ trust, healthy and happiness ” . Customers will hold strong trade name placement, they remember slogan easy in head.
Following, gross revenues publicity being used by Dutch Lady to advance their merchandises which it represents a set of different promotional activities that has the end of clients for buying. The most common signifier of gross revenues publicity is the merchandise sold at publicity monetary values. Dutch Lady has designed it in a manner to promote the company ‘s gross revenues. They can pull more clients since they get more benefits from the merchandise they purchased.
Public relation is the least obvious but most effectual method of used by Dutch Lady. This is because information is spread to the media to bring forth intelligence coverage. Dutch Lady distributes its newssheets, one-year studies, contribution for charitable and civic events. For illustration, Dutch Lady do patronize the jocks for Olympic in London this twelvemonth. They sponsor the jocks and besides their female parent as a part to our state.
Besides, give sampling and free tests to clients allow them hold the chance to see merchandises which in little measures for a short continuance and without to buy the merchandise. Dutch Lady will administer trying in a suited arrangement such as hypermarket to give opportunities client has a attempt on the merchandise. It can promote people to seek and understand the advantages of merchandise without any buying made.
3. Market OPPORTUNITIES
Dutch Lady has the market chance to spread out its concern by offering healthier merchandise to the market. Harmonizing to Rahul Calaco, pull offing manager of Dutch Lady, they made a committedness to cut down the ingestion of sugar and will do most of their merchandise without sugar or in low sugar degree. Dutch Lady wants to better the nutrition consumption of kids include all Malaysians. Milk is the drink with the most nutrition and is good for wellness. However, the market faces a challenge which the norm ingestion of milk by Malaysians are less than the recommendation norm ingestion by World Health Organization.
Dutch Lady will make public consciousness of their merchandises because most people have misconception that milk merely benefits babes, but milk has sufficient nutrition to adult excessively. Dutch Lady wants to understand the ground of low ingestion milk in consumer and want to pass on with them about benefits of milk. So, Dutch Lady involve in publicity such as held runs to advance the goodness of milk to public. Dutch Lady besides involve in authorities ‘s 1 Malaysia School Milk Programmes so that the kids will bear in head about the benefits of milk for their wellness.
The 2nd market chance is to spread out their concern to other states such as Thailand and India in order to gain more net incomes. Since Dutch Lady merchandises are “ Halal ” , so it is non a job for them to travel into those states. Dutch Lady demo good image to the populace and hope to acquire more market credence from more people. In 2012, Dutch Lady leveraged on London ‘s Olympics to advance its “ 2 a Day ” run. Dutch Lady signed up with Olympic Council of Malaysia and sponsored four jocks in our state.
They sponsor the jocks ‘ female parent to London for watching their kids public presentation because female parents ever playing of import function in conveying up their kids to hold so high accomplishment in athleticss. There is a telecasting commercial showcased that Miss Pandalela Rinong who won bronze in plunging event drink Dutch Lady milk since young person in conveying possible to her. Athletes can be the public function theoretical account since they drink milk and acquire benefits from the milk consumed. With the exposure of Dutch Lady trade name name in public, many people started to acknowledge it. Public consciousness about the dairy merchandise produced by Dutch Lady besides increases. Campaigns help a batch in hiking up Dutch Lady gross revenues.
4. RECOMMENDATIONS
Dutch Lady used different publicity schemes to advance their merchandises. Although Dutch Lady is the market leader, but they merely use a few of schemes in advancing their merchandise. However, Dutch Lady is recommended to advance their merchandises through online selling scheme. This is a company attempt that Dutch Lady can construct a direct and good relationship with the clients. Most of the concern in universe today is carried out through digital web that connect companies and people. Therefore, on-line selling brings many benefits to them. Online selling is less clip consuming and easier manner to advance the merchandise to the populace. The maker can reach with their client without face to face in order to explicate all those information, they can utilize webcam to hold a conference.
Besides, Dutch Lady is advised to come out with some new merchandise development scheme. Launching of a new merchandise is to increase gross revenues and besides gain more net incomes. The new merchandise invention can assist Dutch Lady to keep its loyal clients who are ever look for innovated merchandise. Dutch Lady can establish some merchandises which focus on aged. In the last few old ages, osteoporosis has become recognized as major wellness job. Dutch Lady company can make more milk that contain foods such as Ca, Mg, F, Sr, Cu, Zn, manganese, B, vitamin C, D and K. These foods play a function in bone acquisition. This can do more ingestion of milk in the aged market because these types of milks will be a good nutritionary solution in maintaining castanetss strong and healthy.
Dutch Lady can spread out their concern to other states. Presently, Dutch Lady merely exports their merchandises to Hong Kong, Singapore and Vietnam. So, Dutch Lady is recommended to exports their merchandises to some other states like India, Iran or Pakistan. Dutch Lady merchandises are “ Halal ” , so it will non run into any job to be sold in these states. They can perforate into the market easy. These states citizens milk ingestion are rather high. So there is a market chance for Dutch Lady to sell the merchandises over at that place. They know the benefit of milk brings to them. Since Dutch Lady patron jocks in London Olympic, so the high trade name equity of Dutch Lady is set in people ‘s head.
5. Decision
Overall, Dutch Lady Milk Industries Berhad to the full utilizes the selling mix scheme. In the monetary value scheme, they use incursion scheme, psychological scheme, promotional scheme and price reduction scheme. Ad scheme, gross revenues publicity scheme, public relation scheme and trying scheme as the publicity scheme. Besides, they use retailing channel and wholesaling channel as the distribution scheme. Dutch Lady has to set in attempt to make and market high quality merchandises to fulfill consumers ‘ demand in the merchandise scheme. However, every coin has two sides. An organisation has their positive and negative impacts, so that they need to take consideration to their development and direction. In decision, nowadays Dutch Lady is the market leader in the market.