Dutch Lady Case

2.0 SITUATION ANALYSIS

Studies have shown that the Malaysia birth rate was at 21.41 per 1,000 people in year 2010. The current target market share of DLMI is 5% for segment age between 1 to 6 years old. Unveiling the innovative first-ever nutrition specific UHT milk whereby formulation was made right for a child’s age to enter the mature dairy market. Current perception of consumer favors traditional powder milk to provide basic requirement of nutrition to kids as a result from lacking product knowledge on our new concept for UHT milk product. Competition has been intense in the market due to evolvement in Nutritional Research and Development from rivals; DLMI anticipate rising price for imported dairy raw materials, which implies on higher cost pressure likely to impact on company’s profitability. DLMI has adopted the skimming pricing strategy, being the market leader and first company that come out with small packaging UHT milk 125ml for kids.

3.2 STRENGHT, WEAKNESS, OPPORTUNITIES, AND THREAT ANALYSIS

3.2.1 STRENGHTS

1. Innovative product - The first-ever company provided kids UHT milk

2. Extra essential nutrition like: Magnesium, Calcium, Vitamin D, Vitamin A and Protein

3. Small packaging and more convenience

4. Easily available in the market

5. Affordable for consumers in all financial range

6. Have more variety like: original full cream, chocolate, and strawberry flavour

7. Big brand and trust worthy

8. Reader Digest Super Brand Gold award for 11 successive years since 1999.

9. In-depth industry experience and insight

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