BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

Dutch Lady Ready-To-Drink Oat milk

1.0 Introduction
Dutch Lady Milk Industries Berhad (Dutch Lady Malaysia) is one of the nation most trusted
dairy producer in Malaysia and also be listed on Bursa Malaysia, the local Stock Exchange in
1968. Royal FrieslandCampina, the largest dairy cooperative in the world is its parent
company and Permodalan Nasional Berhad is its second largest shareholder. Dutch Lady
Malaysia manufactures and sells wide range of dairy products and fruit juices such as Infant
Formula, Growing-up Milk, Powdered Milk, Condensed Milk, UHT Milk, Sterilised Milk,
Pasteurised Milk, Cultured Milk, Yoghurt and Fruit Juice Drinks that represent by strong
brands such as Dutch Lady, Frisolac, Friso, Completa, Omela and Joy. It also the first
company that market Dutch Lady 123 and Dutch Lady 456, a growing up milk powder
specifically formulated for children in Malaysia. Dutch Lady Malaysia is also the market
leader in milk categories as its annual revenue in 2009 was RM 692 million (Dutch Lady
Company Profile, n.d.). In addition, Dutch Lady Malaysia also received the Readers Digest
Trusted Brand Gold Award in 2007, which Malaysian consumers voted this brand as their
preferred brand in milk product for 9 consecutive years (The Dutch Lady Story, n.d.). Due to
the believes in product innovation and the responsibility to provide high quality nutritious
products to its consumer, Dutch Lady Malaysia is plan to conduct a market research to
market another series of nutritious products, Dutch Lady Ready-To-Drink oat milk with
targeting health diets, vegan and lactose intolerance consumers.

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

2.0 Objective
Dutch Lady Ready-To-Drink Oatmilk is a series that will be market as a plan to expand the
business. Therefore as a marketing manager, market research will be conducted for the few
objectives. First is to understand the consumers needs and expectations toward Dutch Ladys
products. This is because with the up to date information about the market trends and
demands, product that fulfil the customers need can be produced. Next is to seek for
background information about consumers such as their income range and buying behaviour.
With this information, it can guide the marketers in making decision to position, package and
price the product. Lastly, market research also helps to forecast the future sales of the product
and help marketers in selecting the suitable distribution channel to market the product.

3.0 Market Research

For the product market research, quantitative research method such as self-completion
questionnaire and qualitative research method such as shopping mall intercept interview is
used to gather data and also response from the targeted market.
3.1 Qualitative Research
For qualitative research, shopping mall intercept interview has been chosen because
interviewers able to explain complex questions to clear the doubt of the respondents and also
reduce the chance for respondents give up halfway through. There is also chance to ask open
ended questions since respondents will not face difficulties in writing out their answer.
When trial product is given to try, non-verbal clues such as face expression that show how

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

respondents are responding to the questions also can be picked up (Phellas, Bloch and Seale,
2011).
Therefore, the shopping mall intercept interview will be carry out by giving targeted
respondents taste tests the oat milk trial product. Then, interview them to gather their
opinions and also observe their reaction. In the interview, respondents are required to provide
feedback on the taste and packaging of the products. After the interview, respondents will
required to answer a questionnaire to enable marketers to collect demographic and
psychographic data.
3.2 Quantitative Research
For quantitative research, selfcompletion questionnaire has been chosen for the purpose of
collecting demographic and psychographic data such as income range, social class,
occupation and lifestyle. This is because such way gives time for respondents to gather
information and check their records before they answer the questions. Besides, absence of
interviewer provides anonymity for respondents to answer questions that are sensitive or
personal, so it can increase the reliability of the data (Phellas, Bloch and Seale, 2011).
As quantitative method is the most effective way to gather data for marketers in making
decision in pricing, positioning, distribution and promotion channel, questionnaire that wellconstructed will distribute to the wide range of target respondents or some of them that
already go through the intercept interview at shopping mall and hypermarket. Questions will
be constructed in three kinds, close-ended, dichotomous and multiple-choice to ask questions
such as what is you gender?, what kind of milk you prefer?, how often you consume a gallon
of milk?, where you usually consume the milk? and others.

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

4.0 Product Strategy

Dutch Lady Malaysia decides to use diversification which develops a new product, Dutch
Lady Ready-To-Drink Oat Milk which made from whole oats, hulled grain and combined
with water. It is a non-dairy product that has a very mild, slightly sweet flavour which the
sweetness is derived from the conversion of the oat starches to maltose that can consume by
diabetics and people on low sugar diets (Pureharvest, 2013). This product is produced to
reach the new markets as a strategy to expand business and able the market growth in the
future.
4.1 Positioning
Product positioning is the decisions and activities that intended to create and maintain a
certain concept of the product in customers minds (Hult, Pride and Ferrell, 2012). Dutch
Lady Malaysia is using product benefits offered as their strategy to market their new product,
Dutch Lady Ready-To-Drink Oat Milk. It is made from oats and is high in fibre, sugar free,
low in saturated fat and free of cholesterol. Therefore it is suitable and recommended for
target consumers that having health diets. Besides, oat milk is a non-diary product therefore it
is free of lactose which also suitable for our target consumers, vegans and people who are
lactose intolerance.
4.2 Packaging, Pricing and Distribution Channel
For the packaging, this new product will come in ultra-high temperature (UHT) packaging in
250ml and 1L (appendix 1). This is because for UHT packaging, all bacteria were killed in
high temperature, so that it do not need to place in refrigerator all the time which is
convenient for targeted consumers (Dutch Lady Malaysia FAQ, n.d.). In addition, the brand

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

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name, Dutch Lady will label to identify the product and short list of whats good will
include to help customers quickly identify the benefits. As a healthy nutritious product, the
price for UHT packaging in 250ml will be priced RM 2.50 and RM 9.99 for the 1L packaging
which is slightly higher than the existing milk product. For the distribution channel, the
existing product were distributed to retailers such as Carrefour, Tesco, Aeon and others
hypermarket, and convenient store such as 7-11 convenient store. Retailer is used because
according to Kotler (2006) retails organization carries a wide variety of product lines such as
household goods and each line is operated as a separate department which may reach specific
buyers easily. In addition, this existing distribution channels are doing well. Therefore, the
same distribution channel which is going through retailers will use to market and distribute
Dutch Lady Ready-To-Drink Oat Milk to reach the target customers.
4.3 Promotion strategy
According to AIDA concept, there are four stages that consumers need to go through to
accept a promotional message such as attention, interest, desire and action (Summers et al.,
2005). Therefore, advertising is the main promotional tool while public relation and sales
promotion is used to reinforce buying decision.
Advertising is a paid non-personal communication that uses to convey or advertise a product
or message to target audience through mass media, including television, magazines, social
site and others (Hult, Pride and Ferrell, 2012). It is useful to create awareness and able to
reach large target audience at a low cost per person. Then, repetition of television advertising
can enhance and remind the target audiences about the new product. Opinion leader such as
celebrity will be invite to appear in the TV advertisement to add on the products value. In
addition, print advertisement will publish in health magazines that have the potential that

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

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have long life good pass-along readership. Therefore, it can reach target audience easily. On
the other hand, statistic shown that social site such as Facebook has about 665 million of
daily users (Yahoo Small Business Advisor, 2013). Therefore, web-banners ads and pop-up
ads will used to advertise the new product on social sites.
Public relation (PR) not only has the greatest impact in building awareness, it also help in
introducing new product and supporting sales effort (Summer et al., 2005). Therefore,
publicity based PR tools such as press conference and the concept of word-of-mouth
communication will use to sell the new product. According to Hult, Pride and Ferrell (2012),
word-of-mouth communication is an informal exchange of communication that customers
share with one another about a products or brands. To generate publicity, opinion leaders
such as celebrity who emphasis on health diet will be given products to try in the hope that
they can help in creating awareness and encourage people to try it.
Sales promotion is a short-run tool that able to stimulate purchase intent and increase demand
immediately (Summers et al., 2005). As research shown, 51% of consumers indicate that
coupons have significant effect on the purchasing behaviour (Hult, Pride and Ferrell, 2012).
Therefore to increase the sales, 20% discount coupon for purchasing Dutch Lady Ready-ToDrink Milk will be awarded to those who purchase Dutch Lady Ready-To-Drink Oat Milk
half dozen 250ml or a 1L packaging during the first 2 weeks of marketing the new product.

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

5.0 Consumer
In 2012, people are more health conscious as consumers who consume healthy products such
as weight management products were increased. This is because consumers become more
aware of the risk of obesity and heart diseases since Malaysian government has actively
highlighted the health issue through various educational health campaigns (Euromonitor
International, 2013). Therefore, the target market for the new health nutritious product, Dutch
Lady Ready-To-Drink Oat Milk is people who are having healthy diets, vegan and lactose
intolerance. Vegan as target consumer because as a vegan they cannot consume animal milk
product, therefore, this new non-dairy product also called plant milk provide them an
alternative way to gain calcium. On the other hand, people who lactose intolerance is unable
to digest lactose that found in milk. Therefore, they are given an alternative way to consume
non-dairy product to gain calcium and fibre.
In the market, there are many other brands either international brand such as Pure Harvest
that also market oat milk in retailers such as Cold Storage and local brand, Fitwell that sell
oat milk powder. Due to the variety choices in market, brand and benefit of the product are
significant for consumers. Besides, brand loyalty also hard to maintain in this category of
product because consumers purchase different products not due to dissatisfaction but due to
seek for variety benefit that offered (Management Education, 2012). This type of consumers
is called variety seeking consumer. To attract and encourage this type of consumers to
purchase the new product Dutch Lady Ready-To-Drink Oat Milk, marketers need to offer
them discounts coupons and also by advertising the product to show the significant different
in benefit between the product and other brands product.

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

References
Dutch Lady Milk Industries Berhad (no date) Company Profile. Available from:
http://www.dutchlady.com.my/en/home.asp?page=company&subpage=comp_profile
[Accessed 10 October 2013].
Dutch Lady Milk Industries Berhad (no date) The Dutch Lady Story. Available from:
http://www.dutchlady.com.my/en/home.asp?page=company&subpage=dl_story [Accessed
10 October 2013].
Dutch Lady Milk Industries Berhad (no date) FAQ. Available from:
http://www.dutchlady.com.my/en/home.asp?page=nutrition&subpage=faq [Accessed 12
October 2013].
Euromonitor International (2013) Consumer Health in Malaysia. Available from:
http://www.euromonitor.com/consumer-health-in-malaysia/report [Accessed 12 October
2013].
Hult, GT., Pride, WM. and Ferrell, OC. (2012) Marketing. 16th ed. South-Western: Cengage
Learning.
Kotler, P, Adam, S, Brown, L & Armstrong, G. (2006) Principles of Marketing. 3rd ed.
Australia: Pearson Education.
Management Education (2012) 4 types of consumer buying behavior. Available from:
http://managementation.com/4-types-of-consumer-buying-behavior/ [Accessed 12 October
2013].

BMC 2914 Promotional Management

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Phellas, C. N., Bloch, A. and Seale, C. (2011) Structured Methods: Interviews,

Questionnaires and Observation. Available from: http://www.sagepub.com/upmdata/47370_Seale_Chapter_11.pdf [Accessed 12 October 2013].
Pureharvest (2013) FAQs. Available from: http://www.pureharvest.com.au/faq/are-there-anysweeteners-added-your-oat-milk [Accessed 12 October 2013].
Summers, J., Gardiner, M., Lamb, CW., Hair, JF. and Daniel, CM. (2005) Essential of
Marketing. 2nd ed. Australia: Thomson.
Yahoo Small Business Advisor (2013) 21 Awesome Social Media Facts, Figures and
Statistics for 2013. Available from: http://smallbusiness.yahoo.com/advisor/21-awesomesocial-media-facts-figures-statistics-2013-231748416.html [Accessed 12 October 2013].

BMC 2914 Promotional Management

Individual Assignment

Kuah Rui Ning

0303011

Appendix
Picture shown below is the example of the ultra-high temperature (UHT) packaging in 250ml
and 1L. This is the existing Dutch Lady Ready-To-Drink Milk packaging. Seem this
packaging is doing well, the new product that going to market will also in the same
packaging format in 250ml and 1L.

Example of 1L of UHT
packaging

Example of 250ml of UHT

packaging