Danone Dumex competitive edge

Danone Dumex competitive edgeHow does a Danone Dumex (Malaysia) Sdn Bhd SHAMSUDIN, SITI AKMAZNI maintain the brands competitive edge?1.0 Introduction1.1 COMPANY primer coatDanone Dumex1 is part of Groupe Danone, a Fortune 500 comp all which was operate since 1958, one of the most successful healthy food companies in the world. Its headquartered is in Paris, France. Besides, Danone Dumex manufactures infant and squirt nutritional products and these products atomic number 18 then distributed in Singapore and Malaysia with exports to twenty countries in Asia, Middle East, Africa and Europe. It is the market place attraction and ranked number one in overall customer satisfaction in a study conducted among medical professionals and the retail trade by AC Nielsen. Then, it is besides named as a Top cardinal Brand Family by AC Nielsen in 2002 and 2003, as well as Best Employers in Malaysia for 2003 and 2005.1.2 Justification of the topic In this assessment, I have ask Danone Dumex company because it has high market division that lead it become a market leader in infant growing milk formula industry. As a manufacturer of infant and child nutritional products, all its products provide the right nutrition for optimum growth and development especially support a good digestive system of children at different stages.Besides, this company has an international relationship with Singapore, Brunei, Middle East and Africa in exporting its products. Thus, here, we tail assembly say that it is a multinational company in this industry. So, because of this, I demand to investigate and do query ab start this company in this assessment.2.0 Findings2.1 New logo and packagingRe cently, Danone Dumex (Malaysia) Sdn Bhd is opinion to rebrand its products. In this rebranding, Danone Dumex change logo and packaging2. The packaging was modern, dynamic and contemporary look and feel match to the Danone Dumexs gross revenue director, Joris Bernard and GCH Retail (M) merchandisi ng director, Ian Cruddas3.2.2 Long-relationship with Malaysian p arents and children Danone Dumex also want to guide and commemorate long-term relationship with Malaysian parents, children and with the people outside. As it has a radical brand identity, this leave behind lead to customers loyalty to its products4. Hence, this sale of new product of Danone Dumex will boost its market.2.3 PriceUsually, as a market leader, the price of the products will be improver. But, for this company, Danone Dumex products are expected to not increase in price. It thinks and confident that the sales of its products will boost the markets and thus, cover its probably loss5 from the cost of production, promotion and cost to advertise the products.3.0 ANALYSIS OF THE ISSUES3.1 Current SituationProduct spirit cycle6 is used in this analysis to show points at which personal line of credites may need to consider launching new products, as older ones are in decline, relinquish a business to plan di fferent styles of marketing, suspensor a business to manage its product portfolio and identify points at which extension strategies may need to be introduced or should no longer sell a product. (Dave Hall, page 179).Hence, in this situation, Danone Dumex products now in due date 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 clearly 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 will enter the market to take advantage of services. Thus, Danone Dumex decided to rebrand its products because it wants to maintain the brands competitive edge7 where it is one of the advantages of rebranding. (Dave Hall, page 204 and 205). These can allow people and customers outside horrify quickly with its products and expected th e new sales will boost the sales of the products8.3.3 Long-relationship with Malaysian parents and childrenThe launch of its new brand identity had cause Danone Dumex to both 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 get punt in track and the new sales of the products will boost the sales.3.4 Market leaderFrom the name10, 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 Growing 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 thi s will not be a risk set about by this company.3.5 PriceThe products can be expensive 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). Cost 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 prices of its products12. As a result, Danone Dumexs products are rest in gaining the value because of the loyalty customer in buying Danone Dumexs products133.6 SWOT Analysis of Danone DumexTo see the problem formulationd by this company clearly, I use SWOT analysis to access the present authority of this company, the upcoming or expected possible changes.StrengthWeaknesses* Market leader14 in milk formula industry (S1)* Loyalty customers (S2)* Healthy product for infants and children (S3)* Costly because has invested more than(prenominal) than RM4 million in its new look venture (W1)* The prices for the new-look products are remains unchanged that will provide quite 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)* more competitors (T1)* Economic downturns (T2)* The resources and raw materials expensive (T3)Table 2 shows the SWOT analysis, the current and expectation 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 strength of this company in its market. This is because there will be no strong competitive 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 rebr and 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 mode to advertise the new look product.The threats, 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 expec tation 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 power of the customers will be decreases and hence, causing Danone Dumex to has loss. Besides, the other threat is the resources and raw materials are expensive (T3) in the future as the raw materials are difficult to get and find.CONCLUSIONWith the commitment 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 c ountries 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 fu ture. Hence, does Danone Dumex still can maintain its competitive edge in the future?BIBLIOGRAPHYGeneral Texts1) Dave Halls Rob Jones Carlo Raffo Ian Chambers and Dave Gray, 2004. Business Studies (Third Edition) Legoprint, Italy. Waring Collins Ltd.2) Peter Stimpson. AS Level and A Level Business 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) Un screwn author, Danone Dumex Melamine-Free Shanghai Regulator Says retrieved from http//www.bloomberg.com/apps/news?sid=aSE8M3rTXulwpid=206010807) Unknown author, 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/Ma rket-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 sport a new look retrieved from http//biz.thestar.com.my/news/story.asp?file=/2008/7/8/business/21761434sec=businessTitle of the article Business Leaders say Rebranding is Key to retrievalSources Article from website of Britannica OnlineDate 14th February 2009WebsiteAuthor Tom BanksBusiness Leaders say Rebranding is Key to RecoveryDesign Week, February 12, 2009 by T om BanksSummaryThe article focuses on wideness of rebranding and design to fight against economic recession and assist business recovery in Great Britain. It states that rebranding helps business leading 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 key 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 and 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 large corporate institutions get back on track, and 85 per cent say design will play an distinguished 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 appetite 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 will restrain their brand and marketing spend, for worry of being seen to be spending while people are financial support Document 5(Primary Data)Survey Awareness of the Malaysians Towards Danone Dumexs Products Especially Its New- get wo rd 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 filling out these questionnaires. Tick the box with and answer the questions.1) Gender Male Female2) Status Married Single Widow/ widower Others.3) What are the instant 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 tout ensemble family?..6) Annual household income Less than RM1000 RM 5001 RM 10000 RM 1001 RM 5000 RM 10,001 and above7) Usually, how much you or your family (mom or dad) spent for the instant milks?For these questions, tick for your answers for these statements.StatementsStrongly knowKnow non sureDoesnt knowStrongly doesnt know8) Do you know any products from Danone Dume x?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% buyers bought Danone Dumexs products which is 57% is the old customers and another 12% is the new customers.3. Most of consumers loyal to Danone Dumexs products because they know the ingredients and contents in the instant milk that will help for sufficien t nutrient and growing to their babies.4. 93% of the customers are from the females customers.5. Most of the customers said that they afford to buy and spent their money to buy the affordable price of Danone Dumexs products.1 Retrieved from http//www.dumex.com.my/about_us2 Supporting chronicle 1- Danone Dumex Products pleasure a New Look3 Supporting chronicle 2 Giant Spotted in Shah Alam Company Unveils Huge Logo as let out of Rebranding Exercise4 Supporting document 1 Danone Dumex Products Sport a New Look 5 Supporting document 3 Players in Growing Up Milk Formula Market Face taut Competition6 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- Da none 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 Supporting 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