Dairy products are very popular in United Arab Emirates (UAE). Also, the dairy market is experiencing a rapid growth due to the expanding economy, increased population, tourists, and the international market. This has created an opportunity for the dairy farming and dairy product enthusiasts to venture into this market and serve this demand. Consumers benefit from the dairy products from a wide range of nutrients such as calcium, potassium, vitamin D, and protein. A diet enhanced with dairy product gives healthy bones and reduces the risk of related complications such as weak teeth and osteoporosis (Bashir, 2011). The increasing health awareness in the UAE has led to an increased demand and people are now purchasing healthy products in efforts to reduce cases of obesity and other diet-related complications (Beck, Heyman, Chao, & Wojcicki, 2017). In this regard, I intend to introduce low-fat dairy product with the aim to serving this market segment which is cognizant to healthy products. The new product will trade as “Milkys.” To ensure the product establishes its market niche successfully, the marketing team will adopt innovative marketing strategies, based on the 4Ps (place, products, promotions, and prices).
Milkys will be one of the leading supplier of low-fat milk products. The market in which the brand will serve is filled with similar or alternative products. To face the competitors, Milkys will diversify its product portfolio in its marketing mix as a strategy to increase its market outreach. The products will include tonned milk and pasteurized milk from the Buffaloes, double toned and pasteurized milk from the dairy cows, supplied from local farmers and ranchers. Milkys processing will lead to a wide range of products for different uses, and thus full cream milk, which will be supplied to sweets, curd, and savories making companies will also be produced. Skim milk is also a low-fat product which will be placed and marketed as a healthy food product in line with the ongoing health awareness campaigns in the UAE (Dang, 2014). Other dairy products which will also be available are cheese, butter, curd, ice-cream, milkshakes, and buttermilk. The company will also produce flavored products such as strawberry, chocolate and vanilla yogurt.
Milkys will use innovative packaging designs as an element of product strategy. The use of tetra packs will help us to achieve the main objectives of packaging processes such as ensuring high product quality, reducing the wastage and costs of distribution. More of these, innovative packaging will stretch the lifespan of the products in the supply chain without refrigeration. Also, the packaging will be used to promote the products by writing eye-catching messages in line with our healthy product placement strategy. Also, the packaging materials used will be environment-friendly for all our liquid products.
High-quality products can only be made from high-quality raw materials and processing systems. To ensure the company receives high-quality raw milk from our suppliers, Milkys will invest in training our farmers on latest technologies, breeding programs, and livestock management to ensure the milk meets the nutritional and sanitation standards (Beck et al., 2017). Also, the suppliers will be required to supply their milk to the companies in pristine condition and quality tests done before the milk is purchased. Milkys will be very proactive to ensure the farmers deliver high-quality raw milk to the company.
Milkys products will meet the international market and the prices are expected to be lower than most of the substitute products and its competitors. This will allow the brand to establish its market niche easily. The prices of our main products which are low-fat dairy products will be maintained low to enhance affordability at times when the government is pushing for health eating awareness (Dang, 2014). However, the flavored products such as the yogurt are popular in the international market and to ensure the brand benefits for the improved economy and the high influx of the tourists, premium pricing strategy will be maintained for this product line.
Since the industry is dominated by large multinationals who enjoys economies of scale, competitive pricing will be important for Milkys (Grewal et al., 2017). Unlike other milk processing companies which invest in milk collections, we shall contract farmers to deliver milk to our collection centers by themselves and this will save logistical costs for the company, and thus enable us to implement competitive pricing strategy (Grewal et al., 2017). This will ensure our prices are below the current prices offered by our competitors. Also, the milk will be packaged in small volumes to serve everyone in the market.
To ensure Milkys products are available to the consumers, an effective distribution system is critical. We aim to use both the traditional and modern trade systems. The traditional distribution system will involve the distributors, wholesalers, retailers, and consumers while modern approach involves consumers purchasing goods directly from the supermarkets (Dang, 2014). The traditional channel is very popular and effective in this market and it is expected to contribute 80% of our revenues while the rest will be implemented through the modern trade distribution system.
Investing in an online sales management system will go a long way in managing our supply chain. This system will integrate our distributors, retailers, and sales personnel on one platform with real-time capabilities to update our database. This will be paramount in giving us the real-time trend in the market and thus emerging issues such as unexpected demand or shortage can be addressed on time (Grewal et al., 2017). The system will also be created to support the management of inventories, trading management, and individual retailer’s information. This will allow the management to monitor the stakeholders after every 2-3 hours and this will also be very important in making day to day decisions.
- Investing in advertisements. The company will invest on paid adverts in the print media, mainstream media as well as other influential platforms such as duty-free advertisement boards in the airports which are very popular for international travelers (Dang, 2014). Other than paid ads, Milkys will also adopt an aggressive social media marketing and promotional strategies. The majority of the consumers in the targeted market are active on social media and thus this will be an important strategy to drive the brand forward.
- Community brand. As a brand promoting healthy eating, our marketing strategy will carry the message that consuming low-fat dairy products will help reduce the obesity and related health lifestyle complications. To enhance this message, Milkys will sponsor a number of health initiatives such as obesity walks. This will also involve sponsoring health programs in the mainstream media where our brand will receive on-air mentions (Grewal et al., 2017). Our long-term goal is publishing a healthy diet magazine for our consumers.
High-quality products, innovative promotional strategies, strategic distribution systems and aggressive promotional strategies define the proposed marketing plan for our products. With the increased population and improved economy, Milkys have an opportunity to establish its niche in the UAE market and strive to drive its brand beyond borders. It is, therefore, important to implement this marketing strategy in efforts to push the product to the consumers.
Bashir, K. A. (2011). Consumption of dairy products in the UAE: A comparison of nationals and expatriates. Journal of the Saudi Society of Agricultural Sciences, 10(2), 121-125. Retrieved from https://doi.org/10.1016/j.jssas.2011.04.002
Beck, A., Heyman, M., Chao, C., & Wojcicki, J. (2017). Full fat milk consumption protects against severe childhood obesity in Latinos. Preventive Medicine Report, 8(1), 1-5.
Dang, T. (2014). The success of applying marketing mix 4Ps in Vietnamese dairy industry. Retrieved from https://www.theseus.fi/bitstream/handle/10024/85926/Dang_Truc.pdf
Grewal, D., Levy, M., Mathews, S., Harrigan, P., Bucic, T., & Kopanidis, F. (2017). Marketing.
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