Danone Dumex competitive edge

Danone Dumex rivalrous environHow does a Danone Dumex (Malaysia) Sdn Bhd SHAMSUDIN, SITI AKMAZNI bear the brands agonistic edge?1.0 admittance1.1 COMPANY BACKGROUNDDanone Dumex1 is part of Groupe Danone, a Fortune five hundred alliance which was operate since 1958, one of the nigh successful rosy-cheeked nourishment companies in the world. Its headquartered is in Paris, France. Besides, Danone Dumex manufactures infant and child nutritional harvest-tides and these products argon thence distributed in Singapore and Malaysia with exports to twenty countries in Asia, substance East, Africa and Europe. It is the commercialize draw and ranked number one in over alone client rapture in a study conducted among medical professionals and the retail trade by AC Nielsen. Then, it is in some(prenominal) case named as a Top Three trade name Family by AC Nielsen in 2002 and 2003, as well as scoop Employers in Malaysia for 2003 and 2005.1.2 Justification of the topic In this asse ssment, I dedicate ingest Danone Dumex company be drive it has steeper market sh atomic number 18 that lead it become a market attraction in infant growing milk construction pains. As a manufacturer of infant and child nutritional products, all its products earmark the right nutrition for optimum growth and development particularly support a unspoiled digestive system of children at diametrical presents.Besides, this company has an international kinship with Singapore, Brunei, Middle East and Africa in export its products. Thus, here, we squeeze out submit that it is a multinational company in this industry. So, beca expenditure of this, I ask to investigate and do research closely this company in this assessment.2.0 Findings2.1 untested logo and packagingRe cently, Danone Dumex (Malaysia) Sdn Bhd is thinking to rebrand its products. In this rebranding, Danone Dumex change logo and packaging2. The packaging was modern, dynamic and contemporary savor and feel acco rding to the Danone Dumexs gross gross sales director, Joris Bernard and GCH Retail (M) merchandising director, Ian Cruddas3.2.2 Long-relationship with Malayan p arnts and children Danone Dumex also want to communicate and record long-term relationship with Malaysian parents, children and with the people outside. As it has a impudent brand identity, this volition lead to customers committal to its products4. Hence, this sale of youthful product of Danone Dumex leave behind salary increase its market.2.3 PriceUsually, as a market leader, the bell of the products provide be augment. But, for this company, Danone Dumex products are judge to not increase in value. It thinks and confident that the sales of its products lead boost the markets and thus, cover its probably loss5 from the court of production, promotion and cost to advertise the products.3.0 ANALYSIS OF THE ISSUES3.1 Current Situation crossroad life cycle6 is used in this psychoanalysis to show points at w hich lineagees whitethorn need to consider launching sassy products, as older ones are in decline, allow a business to plan varied styles of merchandise, work a business to manage its product portfolio and identify points at which flank strategies may need to be introduced or should no longer cover a product. (Dave Hall, page 179).Hence, in this situation, Danone Dumex products now in maturity stage because its products have become established with a stable market share, as a market leader (Dave Hall, page 116 and 117) and the sales are distinctly higher than any competing businesses in the same market (Peter Stimpson, page 135).Introduction Growth Maturity Saturation3.2 New logo and packagingAs a market leader and its products are at maturity stage, the competitors go out enter the market to take advantage of profits. Thus, Danone Dumex decided to rebrand its products because it wants to maintain the brands rivalrous edge7 where it is one of the advantages of rebranding. (Dave Hall, page 204 and 205). These can allow people and customers outside expeditious quickly with its products and expected the parvenue sales will boost the sales of the products8.3.3 Long-relationship with Malaysian parents and childrenThe launch of its bran-new brand identity had cause Danone Dumex to twain communicate and commemorate their long-term relationship with Malaysian parents and children9. When having a long-relationship with Malaysian parents and children, this will help this company to approach s chip out in foil and the new sales of the products will boost the sales.3.4 grocery leaderFrom the article10, Danone Dumex is the market leader in infant milk formula in Malaysia, which also has a market share about 40.9% in the year-to-date June period 2009 in the Standard exploitation up milk (GUM). It is also currently sells and exports its products to Malaysia, Singapore, Brunei, Middle East and Africa11 that cause it to have higher market share and growing in market. Being a market leader, it will achieve the competitive edge because competition has become stiff for players in the growing up milk formula industry and this will not be a risk faced by this company.3.5 PriceThe products can be pricy to promote and maintain the brand. An establishing a successful brand in a competitive market can be very costly. Small business may not be able to afford this. (Dave Hall, page 202). make up of production, promotion and market the product will be higher as it is a new looks product. But in this situation, Dumex does not plan to increase legal injurys of its products12. As a result, Danone Dumexs products are remaining in gaining the profit because of the consignment customer in buying Danone Dumexs products133.6 get up Analysis of Danone DumexTo see the job faced by this company clearly, I use SWOT analysis to access the present position of this company, the future or expected come-at-able changes.StrengthWeaknesses* grocery leader14 in milk formula industry (S1)* committal customers (S2)* Healthy product for infants and children (S3)* Costly because has invested more than RM4 million in its new look venture (W1)* The prices for the new-look products are remains unchanged that will provide instead high loss and need more money to back up back the invested money for the new-look products. (W2)* Danone Dumex use above the line promotion (W3)OpportunitiesThreats* Long-term relationship between Danone Dumex and Malaysian parents and children. (O1)* Loyalty customers (O2)* Many competitors (T1)* economic downturns (T2)* The resources and raw materials expensive (T3)Table 2 shows the SWOT analysis, the current and first moment of Danone DumexSWOT analysis shows the current and expectation of Danone Dumexs product. Danone Dumex is a market leader (S1) in infant and growing up milk formula industry that can be authorisation of this company in its market. This is because at that place will be no strong competitiv e edge where can cause this company get loss. Besides that, although it is a market leader and rebranding its products, it does not expected to increase the price of its new rebrand product. Hence, all these are the strength of Danone Dumex besides it has loyalty customer (S2) to its products and its products are prove as a healthy product15 (S3) for infants and children.However, this company also has a few weaknesses likes it has spent a lot which is more than RM4 million in its new look venture16 (W1). So, this is the most risky ways of Danone Dumex to be faced as the prices for the new look products are remain unchanged17 (W2) and used above the line promotion (W3) that is quite costly and expensive as its promotional method to advertise the new look product.The banes, the opportunities are the expectation that will face by this company in the future whether it will gain more profit or loss. The opportunities that will face by this company are the long-term relationship between this company and Malaysian parents and the children18 (O1) and the loyalty customer (O2) for its new rebrand products. As these opportunities are faced by Danone Dumex, its expectation to not increase the price for the new look product will boost the market that can back up the invested money and prevent more loss for this new look product. Then, lastly is the threat or the bad expectation that will be face by this company. The first threat is there will be many competitors (T1) enter into the same market as Danone Dumex. Then, if there is economic downturns (T2) in any country, the unemployment will be increase, the buying world-beater of the customers will be decreases and hence, causing Danone Dumex to has loss. Besides, the other(a) threat is the resources and raw materials are expensive (T3) in the future as the raw materials are intemperate to get and find.CONCLUSIONWith the commission and willing to take the risks, it is believed that Danone Dumex will boost its sales as it rebranded its new-look products. This is because it is a market leader in this industry, has high market shares and the sales are also clearly higher as it exports its products to the other countries likes to Malaysia, Middle East, Singapore, Brunei and Africa. Even though its price is remaining unchanged, the loyalty customer and the well-established product of Danone Dumex in this milk formula industry have made its sales boost the market and gain profit. This is the strength of Danone Dumex as the market leader and has high market share19 as shown and explained in SWOT analysis. Hence, for me, there will be no problem for Danone Dumex in get profit and maintain its competitive edge.In addition, from my survey20, it is proven that Danone Dumexs products are healthy for infant and growing-up milk formula industry, has higher percentage of the loyalty customer to its products and most of the customers are afford to buy and spent for the reasonable price for the new look products. So, even though Danone Dumex is still market leader, has loyalty customer towards its products, it cannot stop or avoid the expectation and coming threat that will influence its sales in the future. Hence, does Danone Dumex still can maintain its competitive edge in the future?BIBLIOGRAPHYGeneral Texts1) Dave Halls Rob Jones Carlo Raffo Ian domiciliate and Dave Gray, 2004. personal line of credit Studies (Third Edition) Legoprint, Italy. Waring Collins Ltd.2) Peter Stimpson. AS take aim and A Level rail line Studies. Oxford New York.3) Andrew Gillespie. AS Level and A Level Business Studies. Oxford New York.4) About us Danone Dumex retrieved from http//www.dumex.com.my/about_us5) Danone Dumexs article, Danone Dumex Quality Assurance retrieved from http//www.dumex.com.my/whats_new_2009/article/2009_Quality_Assurance6) uncharted author, Danone Dumex Melamine-Free Shanghai Regulator Says retrieved from http//www.bloomberg.com/apps/news?sid=aSE8M3rTXulwpid=206010807) Unknown a uthor, the other research regarding the rebranding process http//www.google.com/hostednews/afp/article/ALeqM5h7VgLkRxkbLdTKu21W3Y6KGIH1Q8) Unknown author, Global Baby Food Market retrieved from http//www.bharatbook.com/Market-Research-Reports/Global-Baby-Food-Market.html9) Unknown author, Breaking The Rules, Stretching The Rules 2004 retrieved from http//www.ibfan.org/english/pdfs/btr04.pdf10) Lenny, Bernama, Players in growing up milk formula market face stiff competition retrieved from http//besonline.rtm.gov.my/details.php?id=2468pageno=3field=bu_Titleorder=ASCtitle=Business/Economy11) Unknown author, About Us-Danone Dumex retrieved from http//www.dumex.com.my/about_us12) http//www.hotfrog.com.my/Companies/Dumex-M13) Unknown author, About Us- Danone Dumex retrieved from http//www.dumex.com.my/14) Unknown author, Danone Dumexs products romp a new look retrieved from http//biz.thestar.com.my/news/story.asp?file=/2008/7/8/business/21761434sec=businessTitle of the article Business L eaders opine Rebranding is Key to RecoverySources oblige from website of Britannica OnlineDate 14th February 2009WebsiteAuthor tomcat BanksBusiness Leaders say Rebranding is Key to RecoveryDesign Week, February 12, 2009 by Tom BanksSummaryThe article focuses on immensity of rebranding and design to compete against economic recession and assist business recovery in capital Britain. It states that rebranding helps business leaders to achieve a competitive line and commitment to its services and businesses. It also notes that rebranding builds a new relationship with the customers and the businesses.Excerpt from ArticleNews in DepthBusiness leaders say rebranding is discover to recovery By Tom Banks A majority of UK companies see a successful rebrand as a key way of weathering the recession, according to new research. Implementation, Rebranding and Design, a report commissioned by branding consultancy the Principle Group, surveyed 250 marketing directors of blue chip companies a nd UK business owners, and found that the majority recognise the importance of rebranding in a downturn and acknowledge the role of design in assisting business recovery. Levels of confidence varied across the survey, but it found that 65 per cent of business leaders and managers believe rebranding will help long corporate institutions get back on track, and 85 per cent say design will play an important role in generating a recovery for some, or all, brands. A successful rebranding was seen by 64 per cent of UK business leaders as a route to gaining a competitive edge in a downturn. Similarly, 63 per cent agreed that a new identity signified a bold embracing of change. Commenting on the research, Ron Cregan, business strategy director at consultancy Navyblue, says, Any brand with the inclination to develop its brand identity in a recession demonstrates a willingness to challenge the market and a commitment to its businesses, services and products. But he adds that many companies w ill restrain their brand and marketing spend, for fear of organism seen to be spending while people are backing history 5(Primary Data)Survey Awareness of the Malaysians Towards Danone Dumexs Products curiously Its New- calculate Products.Date 25th October 2009I am an IB student of MARA College Seremban and I am doing research about the awareness of the Malaysians towards Danone Dumexs products especially its new-look products. Thus, I need your help in plectron out these questionnaires. Tick the box with and answer the questions.1) Gender Male young-bearing(prenominal)2) Status Married Single Widow/ widower Others.3) What are the glaring milks for baby that you know in our industry?4) What kind of instant milk for baby that you or your family had chosen before this? Fernleaf Danone Dumex Nestle Others .5) Why you use the same instant milks for your whole family?..6) Annual household income Less than RM1000 RM 5001 RM ten thousand RM 1001 RM 5000 RM 10,001 and above7) Us ually, how much you or your family (mom or dad) spent for the instant milks?For these questions, tick for your answers for these statements.Statements strongly knowKnowNot sureDoesnt knowStrongly doesnt know8) Do you know any products from Danone Dumex?9) Have you try to any its products?10) Do you notice that Danone Dumex has a new-look products?11) Danone Dumex products contained DHA (docosahexaenoic ) and AA ( arachidoinic acid ) that were important for brain cells. Do you know with these statements?12) Danone Dumex contains 1c-FOS (long-chain fructo oligosaccharides) dietry fibre and essential nutrients that help support a good digestive system.13) Danones Dumex milk is melamine-free.14) For all the advantages of having Danone Dumex products that I have listed above, do you and your family want to try and use Danone Dumex products?FINDINGS1. 78% buyers are married person and the other 22% is bought by widow/widower and single person who are the siblings of the child.2. 69% buye rs bought Danone Dumexs products which is 57% is the old customers and another 12% is the new customers.3. nigh of consumers loyal to Danone Dumexs products because they know the ingredients and contents in the instant milk that will help for sufficient nutrient and growing to their babies.4. 93% of the customers are from the females customers.5. close to of the customers said that they afford to buy and spent their money to buy the low-priced price of Danone Dumexs products.1 Retrieved from http//www.dumex.com.my/about_us2 Supporting account 1- Danone Dumex Products athletic contest a New Look3 Supporting written papers 2 Giant spot in Shah Alam beau monde Unveils Huge Logo as Part of Rebranding achievement4 Supporting scroll 1 Danone Dumex Products Sport a New Look 5 Supporting document 3 Players in Growing Up Milk Formula Market confront Stiff arguing6 Product life cycle shows the different stages that a product passes through and the sales that can be expected at each stage.7 Supporting document 2 Giant Spotted in Shah Alam Company Unveils Huge Logo as Part of Rebranding Exercise8 Supporting document 1- Danone Dumex Products Sport a New Look9 Supporting document 1- Danone Dumex Products Sport a New Look10 Supporting document 1- Danone Dumex Products Sport a New Look11 Supporting document 3 Players in Growing Up Milk Formula Market Face Stiff Competition12 Supporting document 3 Players in Growing Up Milk Formula Market Face Stiff Competition13 Supporting document 5 Survey Awareness of the Malaysian Towards Danone Dumexs products Especially Its New-Look Products14 Is a business which makes decisions which tend to be followed by other businesses in the market.15 Supporting document 3 Players in Growing Up Milk Formula Market Face Stiff Competition16 Supporting document 1- Danone Dumex Products Sport a New Look17 Supporting document 1- Danone Dumex Products Sport a New Look18 Supporting document 1- Danone Dumex Products Sport a New Look19 S upporting document 1- Danone Dumex Products Sport a New Look20 Supporting document 5 Survey Awareness of the Malaysian Towards Danone Dumexs products Especially Its New-Look Products