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Tunku Abdul Rahman University College

Autor:   •  October 6, 2017  •  3,093 Words (13 Pages)  •  270 Views

Page 1 of 13

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Secondly, Income growth rate is the main factor that will affect the economic and consumer purchasing power. The report from the Household Income/ basic amenities survey (HIS/BA) state that between the year of 2009 and 2012 the income growth rate has grown up to 7.2%. When the income growth rate rises, the consumers have more purchasing power to purchase Dutch Lady’s product.

Social Factor

Nowadays, does not matter male or female, young or old, they wanted to practice healthy lifestyle. Obviously they also want their family to live in a healthy environment and have the essential nutrient to grow up. Besides living a healthy lifestyle by exercising, they are also looking for high nutrition product such as milk and yogurt as breakfast for their family to consume. Dutch Lady has produced good quality dairy products and is well known for their milk and yoghurt production that are enriched with protein.

Technological Factor

Nowadays, the advancement of technology can help the company to improve the sales of business through microblogging. For example, adding a Twitter ads campaign can only help drive that engagement up and gain additional followers and sales. Twitter Ads allows extremely hyper-targeted ads, which can lead to a fantastic Return on Investment. Consumers can get more information about the product through the pages for example, getting the information of the ingredients and nutrition facts of Dutch Lady Products

Moreover, the company can promote their product through Instagram. Instagram is a rapidly growing photo and video sharing platform with more than 150 million users and 16 billion photos shared. Instagram has grown significantly and is set to grow further in 2014. When there are any promotion events or launch any new product, Dutch Lady Milk Industries Berhad can grab huge attention of customer or follower because Instagram Direct allows users to send pictures and video to others privately–like a direct message on Twitter or a private message on Facebook.

Strength and Weakness Analysis

Strengths

Dutch Lady Milk Industries Berhad possesses quite a number of strengths comparing to other 41 dairy product companies. Consumers in Malaysia had experienced various types of dairy products such as milk and yoghurt. However, the consumers in Malaysia have voted Dutch Lady again as their ideal brand of milk product. Dutch Lady has won their ninth Reader's Digest SuperBrands Gold Award consecutively. This is an outstanding achievement that Dutch Lady possesses, it is definitely the strength of the company.

Other than that, in 2004, Dutch Lady also is the winner of the Productivity award that was given by the National Productivity Corporation (NPC). This award is for companies that identify a company’s excellent efficiency management and enrichment, and boost up industry- wide aggressiveness as well as attentiveness of the significance of Malaysia’s productivity enhancement in the direction of economic expansion. It also helps to raise the confidence of the shareholders and increase the worth to its customers’ brand knowledge.

In addition, Dutch Lady products can easily found in every shopping centre to convenience store near the consumers house. Whenever the consumers want to buy the Dutch Lady milk, it will save their time as they do not necessarily need to go all the way to supermarket. In this way, it will save their time. It is a very famous brand in Malaysia, therefore it is sold almost everywhere in this country. Dutch Lady also exports its products to Hong Kong, Singapore and Vietnam that could also easily be found in those countries stated.

Furthermore, Dutch Lady is the leading dairy producer in Malaysia because of the high quality nutrition they used for consumers to consume. Dutch Lady has prioritized their customers and they want to give their customers the best dairy product. They have used the suitable nutrition for different ages. For example, they have launched Friso Gold, the better formula Frisoshield offers Vitamin B6 and C, Selenium, GOS, Zinc and DHA for children of one year and above.

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, the Dutch Lady UHT milk cost RM6.69 for 1 liter in market. Whereas for the competitor, brand called “Goodday”, cost only RM4.00 for 1 liter as well.

Besides that, the 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. And 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 21st of February 2013 and the expiry date typed 21st January 2014, 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 many more. 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

Nowadays, people are more conscious of their health than the past. They are willing to spend more money to buy anything that can make them healthier

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