MARKETING MANAGEMENT

SEGMENTATION AND VALUE PROPOSITION OF DAIRY INDUSTRY

SUBMITTED BY:
ARS SASHANK – 18021141001
A JOGESH KUMAR - 18021141012
AGNITHA B J – 18021141022
B HEMANTH KUMAR – 18021141026
K SRIKAR – 18021141059
DAIRY INDUSTRY

Global Dairy Industry Overview:

Dairy foods and beverages, being an essential part of our diets, have been witnessing tremendous
demand and are expected to continue to do so over the forecast period. As a number of
manufacturers have been addressing the needs of the health-conscious populace worldwide, a
number of low-fat, lactose-free, and cholesterol-free dairy products have entered the market.

Global Dairy Products Market: Drivers and Trends

The absence of strict regulatory frameworks and increasing volume of funds from private and
public sectors have been stimulating the growth of the global market for dairy products. The
flourishing agriculture and animal husbandry industry in several regions of the world has been
responsible for the growing production of milk products.

While cow milk is predominantly used in the production of numerous dairy products, buffalo
milk is also being used in several countries such as India, Egypt, China, and the Philippines. The
rising number of convenience stores, supermarkets, department stores, and hypermarkets across
the world has also been promoting the growth of the market.

A wide variety of products are offered by numerous brands which have been flooding the
market. For instance, butter is available in a number of forms such as flavored butter, spreadable
or whipped butter, butter blends, European-style sticks, American-style sticks, and non-dairy
alternatives. New products are arriving in the market every day. For instance, in April 2017,
Tillamook County Creamery Association launched an entirely new cheddar cheese product to its
Farmstyle Cut line range of products.

Global Dairy Products Market: Regional Outlook

Asia Pacific commands the largest share in the global market for dairy products, driven by easy
availability of raw materials, presence of animal husbandry as one of the key industries, and
growing consumer base. North America might register moderate to sluggish growth rate during
the oncoming years, thanks to the declining domestic demand for dairy products and the
preference for dairy substitutes.
India, termed the ‘oyster’ of the global dairy industry, is perhaps the largest dairy product
producer on a global scale. It is expected to hold a major share in the global market for dairy
products. Dairy products such as buttermilk, butter, ghee, paneer (cottage cheese), dahi
(yoghurt), lassi, and milk-based sweets are a part of the rich culinary tradition of India and are
therefore consumed on a regular basis. China, Indonesia, Malaysia, Bangladesh, and Thailand
are also displaying growing demand for dairy products.

Latin America is likely to register high growth rate. It houses Brazil, the world’s second-largest
dairy herd after India. Argentina, Peru, Venezuela, Uruguay, and Mexico are also slated for
considerable growth.

Companies mentioned in this report include:

Several players have been leveling up their presence in the market via product innovations. New
players are also initiating product offerings. For instance, PepsiCo India disclosed its plans of
entering the Indian dairy market in May 2017.

Arla Foods UK Plc., Nestle SA, Amul, Fonterra Group Cooperative Limited, Dairy Farmers of
America Inc., Kraft Foods, Inc., Megmilk Snow Brand Co. Ltd., Danone, Parmalat S.P.A, Meiji
Dairies Corp., Dean Foods Company, Sancor Cooperativas Unidas Limited, Unilever N,
Parmalat S.P.A, Royal FrieslandCampina N.V., and Groupe Lactalis SA are some of the leading
companies operating in the global market for dairy products.

Key Segments of the Global Dairy Products Market

Global Dairy Products Market, by Type

● Cheese
● Yoghurt
● Butter
● Buttermilk
● Ice cream
● Lactose free milk
● Cream and frozen
● Others
ICE CREAM MARKET

The major key players are Baskin-Robbins, Ben & Jerry’s, and Cold Stone Creamery. In a
Mintel report on ice cream shops published in 2009, “roughly seven out of 10 respondents say
that ice cream is the first thing that they think about when wanting a tasty treat” (Ice Cream).
Given that consumers are easily drawn to ice cream as a product, ice cream shops are not
necessarily challenged at attracting customers to eat ice cream, but instead focus their marketing
efforts on selling the experience and service that comes with a customer’s visit to an ice cream
shop. Some focus on marketing the quality of the product as an extension of the service
experience.

Companies Overview:

Baskin-Robbins is a subsidiary of Dunkin’ Brands, Inc., based out of Canton, MA. It was
founded in 1945 in Glendale, CA by Burt Baskin and Irvine Robbins. Baskin-Robbins has nearly
7,000 store locations in over 50 countries outside the US.They are world's most recognizable
brands of ice cream treats and the world’s largest ice cream speciality chain.Baskin Robbins
entered India in 1993 through a joint venture with the Ghai Group. Its first manufacturing plant
outside North America opened in Pune. Offering delicious and fun treats in 190 cities/ towns
with 725+ stores, Baskin Robbins is one of the largest retail chains in India. The company has a
dedicated team of people with expertise in the consumer goods and hospitality industry that has
turned Baskin Robbins into the world's most loved Ice Cream brand.

Ben & Jerry’s is a wholly owned subsidiary of Unilever Plc, with its headquarters in South
Burlington, VT. It was founded in 1978 in Burlington, VT by Ben Cohen and Jerry
Greenfield.At the end of 2008, it consisted of 845 scoop shops worldwide, most of which are
franchised, while others are company owned (Ben & Jerry’s (e)).Large part of Ben & Jerry’s
profit comes from selling its ice cream pints in retail outlets such as grocery or convenience
stores. Ben and Jerry's products are distributed in 35 countries in supermarkets, grocery stores,
convenience stores, franchise Ben & Jerry's Scoop Shops, restaurants and other venues.Mission
Statement emphasizing product quality, economic reward and a commitment to the community.
Ben & Jerry's became a certified B Corp (Benefit Corporation) in 2012.

Cold Stone Creamery, founded in 1988 in Tempe, AZ by Donald and Susan Sutherland. It is a
subsidiary of Kahala Corporation, a private company based in Scottsdale, AZ.It consists of over
1,400
franchised shops
worldwide.

Value Proposition and how it is delivered:

Cold Stone Creamery most clearly articulates its value proposition throughout its website and
advertising by describing its scoop shops as the “Ultimate Ice Cream Experience” . It has even
gone so far as to copyright the phrase, and when used in conjunction with its mission statement
(“we will make people happy”), Cold Stone is telling its customers that by coming to its stores,
they will be provided with a fun, interactive, and happy experience unlike any other ice cream
shop.Cold Stone positions itself against its competitors (other ice cream shops and supermarkets)
by highlighting its quality product and the unique, customized way that it is served.Cold Stone
claims that its “ice cream is better because [it is made] fresh every day in every store, which puts
Cold Stone completely in a class of its own” .

The company positions itself as providing a super premium ice cream product that is customized
to order, otherwise known as a “‘Creation’—because each one is a work of art”.Cold Stone
allows its customers to choose their toppings and ice cream of choice, after which a scooper then
blends the concoction together on a frozen granite slab. If a large tip is provided, the scoop artists
often break out in singing a lively jingle, something that is not done at the other ice cream
companies, thereby providing a “fun, festive atmospheres in its stores that sets them apart from
the competition”.

Baskin-Robbins also plays up the fun experience that can be had in its shops when describing its
value proposition. As founder Irv Robbins is noted for saying, “‘we sell fun, not ice cream’” .
Additionally, Baskin Robbins includes its variety of unique flavors available for its customers as
part of its value proposition. Baskin-Robbins does not articulate its value proposition as clearly a,
but one reason for this may be because the company’s value might already be known amongst its
consumers, since the company has existed over 40 years.Baskin-Robbins defines itself on its
website as “America’s Favorite Neighborhood Ice Cream Shop,” further emphasizing that the
company is already well known and has repeat customers.However, in order to attract new
customers, throughout its marketing collateral the company may want to further emphasize and
describe the fun experience that is provided in its shops.

One way that Baskin-Robbins positions itself against its competitors is that in addition to having
so many innovative flavors throughout its lifetime, in 2008 the company also became “the first
national ice cream chain to offer both hand scooped and Soft Serve ice cream” .The company
looked to its customers when making this decision, as the idea was “launched as a result of a
company survey that found that more than half of Americans cannot decide between traditional
hard ice cream and Soft Serve” (Ice Cream). While Baskin-Robbins is typically defined as
serving traditional ice cream,by positioning itself as a better value than the other companies,
since its scoops shops offer ice cream at a lower price, yet still provide a fun experience.
Ben & Jerry’s does not directly emphasize an interactive or fun service experience in its value
proposition, but it does indirectly point to the service experience by emphasizing the feeling that
a customer will encounter when visiting one of it shops. The franchise section of its website
describes its shops as “a ten-minute vacation, a bit of self-indulgence, and a joy for the belly and
consumers to support the company’s values by visiting the shops and providing their patronage.
Of course the scoop shops still provide their customers with a positive and fun service
experience, but this is not as clearly articulated on the company’s website.

This is most likely due to the fact that Ben & Jerry’s draws a large part of its profit from selling
pints at retail outlets in addition to selling ice cream at its scoop shops, so the company is not
solely focused on the scoop shop service experience.

Brand Identity:
Each company’s brand identity strives to reflect its value proposition and mission.

Both Ben & Jerry’s and Cold Stone Creamery are known as super-premium ice cream shops,
serving high-quality ice cream, whereas Baskin-Robbins is known as a traditional ice cream
shop, serving lower-priced items and more standard flavors. The 2009 Mintel report clearly
defines each company’s brand identity, naming Baskin-Robbins as the “classic variety” brand,
Cold Stone Creamery as the “‘ultimate experience’” brand, and Ben & Jerry’s as the “ethical ice
cream” brand (Ice Cream).

Ben & Jerry’s faced a particularly daunting task of remaining true to its brand when it was
acquired by corporate giant Unilever in 2000. Fortunately, the company “didn’t convert to
‘corporate,’ despite the buttoned-up personality of its new parent company; rather its leadership
took great pains to stay true to Ben & Jerry’s roots. Ben & Jerry’s demonstrates this stance
throughout its advertising and website, with a strong example of effectively promoting its brand
identity through the “Imagine Whirled Peace” campaign that it launched in 2008. As part of the
campaign, the company set up an interactive mosaic in the form of a peace sign on its website,
allowing users to “upload their own ‘message of peace,’ which was then added to the peace sign
mosaic” for all to view. The benefit of this unique advertising campaign was that “the average
time spent on the site was about 5.5 minutes—an eternity in terms of advertising/marketing” . As
Charles Rosen, a principal at a Ben & Jerry’s advertising agency notes, “‘This is a brand that
built its iconic status not through advertising, but through guerilla marketing, through word-of
mouth and through taking a position that went well beyond ice cream’” .Ben & Jerry’s focuses
more so on promoting its ethical brand identity than on promoting the service experience in its
scoop shops. Ben & Jerry’s also successfully promotes its brand identity through the numerous
community events and promotions run by the company and its scoop shops, such as at its annual
global franchise meeting, when franchisees help repair schools or rehabilitate impoverished
communities as part of their week-long meeting agenda.

Events such as these give Ben & Jerry’s a competitive edge, as there is “a huge difference
between posing as an involved company, and really doing something, and customers can tell”.
The company’s active involvement in promoting its mission through community events and
awareness campaigns successfully upholds its ethical brand identity.
While Baskin-Robbins portrays a completely different brand image, as the classic variety
brand,it has a strong following and significant brand recognition. The company’s variety of
flavors sets it apart from the competition, initially offering “31 flavors, one for every day of the
month”. The company continues to introduce new flavors every year, and their flavor library
now consists of over 1,000 varieties. The Baskin-Robbins website proclaims that “with 98%
brand awareness and with 80% of people in the U.S. enjoying our treats, we enjoy the delicious
position of being the ice cream industry’s recognized leader” .Even though the company has
achieved almost 100% brand awareness, proving that it has many repeat customers, in 2008 it
decided to “revitalize the brand” by introducing Soft Serve ice cream to its customers (Ice
Cream). As with its hard ice cream, Baskin-Robbins stuck true to its brand identity by promoting
“‘31 ways to enjoy’ soft serve ice cream” as part of the new product launch (Ice Cream). This
promotion, using a form of the company’s original tagline, proves that it is successful at
integrating its brand identity throughout all forms of communication, in order to further its image
of a company that provides a variety of options to its customers.

Lastly, Cold Stone Creamery give its brand an edge so that customers could distinguish it from
other competitors. Cold Stone has successfully integrated its brand image throughout all media
by tagging itself as the “ultimate ice cream experience.” As its website mentions, when Cold
Stone first started, “there was a swell of consumers who…demanded quality, variety, and choice.
Cold Stone Creamery was delivering just that, plus one more valuable commodity—
entertainment. Cold Stone Creamery was a fun, novel experience unlike any other. Cold Stone
wisely played up the entertainment factor in its branding, thereby causing customers to tell others
about their fun service experience, which in turn brought the company both newcomers and
repeat customers alike.

Mintel report proves, “among respondents who have gotten ice cream from an ice cream shop,
81% made the decision to do so within an hour of purchase” (Ice Cream). Because of this, all
three ice cream shops particularly try to focus on ways to drive customers to become planned
purchasers, in order to add to their already existing customer base of impulse purchasers. One
way to drive customers to make planned purchases, while thanking them for their support at the
same time, is by running discounted or free promotions.
For example, every year Ben & Jerry’s scoop shops promote Free Cone Day, offering free ice
cream cones at all of their shops nationwide, and now even a few international locations have
started to take part in the tradition.

Likewise, Baskin-Robbins offers their 31-Cent Scoop Night once each year and Cold Stone
offers free ice cream for moms who visit with their children on Mother’s Day (thereby bringing
in two customer segments). Baskin-Robbins also ran a discounted promotion when launching its
new Soft Serve ice cream, offering 88-cent cones “to build excitement and interest in the new
product” (Ice Cream). This tactic is essentially a two-part promotion, in that it introduces a new
product, and also drives customers to the store that may not have otherwise been planning on
going.

All three shops have also tried targeting health-conscious consumers by adding a line of low-fat
or low-calorie menu items to their shops.

Ben & Jerry’s and Cold Stone Creamery do not broadly advertise their lineups of healthier
choices, perhaps to keep up with their image as super-premium ice cream shops. However, both
shops do offer a few frozen yogurt and sorbet options, while Cold Stone also has two low-fat
flavors.

Baskin Robbins ran an entire promotion when launching its line of BRight Choices menu items,
consisting of “fat-free, dairy-free, no-sugar-added, and light ice cream choices” (Ice Cream). The
day that Baskin-Robbins launched its new menus items, every scoop shop offered a “free BRight
Choices scoop to any customer with proof of gym membership” (Ice Cream), in hopes of
attracting an entire segment of customers who might normally try to avoid ice cream shops.

All three companies use extremely colorful advertising campaigns and bright storefronts
to visually attract customers, particularly younger generations or those with children.

Baskin Robbins seems to be viewed as a traditional ice cream shop, as opposed to being a more
upscale super-premium shop.

More recently, all three companies have also started using social media such as Facebook
and Twitter, especially to target the younger generations. Of the three companies, so far Ben &
Jerry’s has fared the best in terms of followers. Baskin-Robbins had 343,000 Facebook fans,
Cold Stone Creamery had 238,400 and Ben & Jerry’s had nearly one million fans (Ice Cream).

One reason why Ben & Jerry’s has more than double the Facebook fan base of the other two
companies is because it is “highly interactive with its fans, constantly updating posts, conducting
polls, and highlighting events—all of which keep fans immersed in the brand” (Ice Cream). All
three companies also have links to Twitter on their websites, allowing yet another way for fans to
spread messages about their fun service experiences at the shops.

Conclusion

The three ice cream shops, it is clear that each has its own brand identity and value proposition,
yet all three seem to target the same customer groups and segments. Financially, while Baskin-
Robbins fared well during the recession, Ben & Jerry’s and Cold Stone Creamery experienced
losses, yet all three companies appear to be stronger now, as evidenced by expansion plans and
store redesign efforts. All three companies do an effective job of promoting their service and
brand through community events and discounted offerings, yet each still needs to work on
drawing more repeat customers, such as by establishing loyalty programs. In terms of the actual
service experience and process, Cold Stone offers the most unique experience, yet all three
companies promote a fun atmosphere with their physical environments, which complement the
indulgence one experiences when enjoying ice cream. It appears that the public’s desire to visit
ice cream shops will not be diminishing anytime soon, so provided the three companies continue
to market both their quality products and the fun and enjoyable aspects of their service
experience, they should all continue to be successful for many years to come.

the world, you will find unparalleled quality and

MILK MARKET

INTRODUCTION
Milk ingredients are the type of ingredients rich in essential nutrients. Milk ingredients are of
various types including casein, lactose and milk protein concentrate and milk protein isolates.
Milk has a relatively limited shelf life, but its ingredients possess relatively longer shelf life.
Milk ingredients are used in various applications such as in supplementary foods and ready to
use foods. Various milk ingredients such as casein and caseinates are rich in protein and amino
acids which have various health benefits associated with its consumption.
Various factors that promotes the growth of milk ingredients market includes rising levels of
health-conscious consumers coupled with growing baby boomer population. The milk
ingredients market growth is primarily attributed to the expanding end user industries. Other
factors that are also expected to support the growth of milk ingredients market is increasing
desire of consumers to consume various food products that contain milk ingredients functional
food, beverage, dairy, meat products, and infant milk formulas. Furthermore, rising disposable
income of the consumers coupled with increasing consumer’s inclination to pay premium price
for food products with various health benefits is a key driver of the overall milk ingredients
market. Major factor that is expected to restraint the growth of the milk ingredients market is
lack of consumer awareness related to the various fortified products that includes various type
of milk ingredients.

Company Profile:
1. AMUL -The Taste of India:

AMUL was formed in 1946 and this brand name has been managed by Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF) which is jointly owned by 2.6 million
milk producers in Gujarat. GCMMF is India’s largest food products marketing
organization. It is a state level apex body of milk cooperatives in Gujarat which aims to
provide remunerative returns to the farmers and serves the interest of consumer by
providing quality products which are good value for money. White Revolution of India was
a historic success because AMUL business concept was part of it. Every day, AMUL
 collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk
into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to
over 500,000 retail outlets across the country. Today, AMUL is a world player because of
its high-quality products, vast co-operative network, indigenous technology, marketing
strategy & member farmer’s belief. Amul has transformed the process for millions of small
farmers by using an automatic, computerized collection system which reduces the time for
weighing, quality testing and payment processing from a few hours with payment days
later, to five minutes and immediate payment. Each day, milk is collected no more than 10
miles from the farmer, with this nationwide, decentralized, collection process. Amul
developed a computerized quality testing machine, which makes the process transparent
and fair to the farmer and buys exclusively from women—a decision which has increased
the status of the women, while developing a positive brand image for India's largest food
products business.

2. NESTLE’: Good Food for Good Life

Nestle is global company of milk products and nutrition, chocolates’, beverage, catering
and many types of confectionary goods. It has its millions of customers worldwide. Today
Nestlé Singapore Limited is on good positioned to grow through its business policy of
constant innovation and renovation, concentrating on its core competencies and
commitment to better and high quality, with the aim of availability to the best quality food
to the people of Singapore.

SEGEMENTATION AND TARGETING

1. MARKET SEGMENTATION OF AMUL MILK

Amul is one brand in milk category that provides trust to its customers as its major value.
Besides trust Amul is the one brand which knows its customers well. It has varied options for its
different target customers. Amul is a way too far in positioning its milk to different customers in
the market.
Bases for Segmentation:
Users markets can be divided based on these customer characteristics.
1. Geographic area
2. Demographic area
3. Psychographic area
4. Behavioural area

Amul Variants of Milk:

1. Amul toned milk

Positioning: Middle class households

Value: Economic Price, Nutritional

1. Amul Diamond

Positioning: Rich People who love creamy milk, thick texture, rich aroma

Value Offered: Creamy, Tasty aroma

 2. Amul Chai Mazaa

Positioning: Tea Enthusiasts

Value Offered: Makes tea more thick and tasty

3. Amul Slim n Trim

Positioning: Heart and blood pressure problematic people, Health and weight conscious people,
fitness enthusiast.

Value Offered: Need not put in refrigerator, need not boil.

Consumer and packaging value:

Amul is the only brand among its counterparts that has packaging available for different target
customers. No other brand in market has such variants.
 Big Pack of Tetra pack for working house members
 Small packing of tetra pack for hostel students
 Flavoured milk for youngsters and kids

Customer Based Segmentation:

 For kids, products such as Amul Kool, Amul Chocolates, Nutramul etc. have been
launched into the market.
 For youth, products such as Amul pizza, Amul pizza cheese, Amul cheese spread etc.
have been launched

Industry Based Segmentation:

 For Milk, most of the requirement would be from ice cream manufacturers, Restaurants,
Food Chains, Coffee Shop chains etc.

Positioning for AMUL: AMUL has carefully cultivated its family-based image.
Brand Positioning Statement: "The taste of India"- It has created a value for everyone in the
value chain, be it a customer or the supply chain.
Emotional Components: Through the campaigns like Operation Flood and "Taste of India"
Functional Attributes: Unique functional attributes of Amul are: -
 Value for money: The best Quality Butter (dairy product) at the reasonable price
 Product Availability: It has huge supply chain and distribution networks across India and
has strong link back to the sourcing farmers.

2. MARKET SEGMENTATION OF NESTLE’

Nestlé has been a partner in India’s growth since 1912, establishing a special relationship
of trust and commitment with its people.
Geographic:
Nature: Nestlé Singapore segmented its market for Nescafe Ice depends on the
geographic weather: warm hot and cold.
Nescafe Ice: A coffee which may be consume with ice. During warm season consumers
making this coffee with normal, chilled or cold-water mixing ice cube to bring freshness
in their body.
Demographic Age:
Nestlé segmented market area for its main products based on the generation. For the
products Cerelac, Lectogen, Koko Krunch, Nido, Nestle divided the market area segment
for new born baby and children of different ages.
 Nido: It is nutritious milk specially makes for children 2 years onwards. It
includes 25 minerals and vitamin D which helps child’s growth.
 Cerelac: Nestle also provide Cerelac for new aged baby. It contains milk and rice
mixture for less than one year’s baby. It fulfils baby’s proper nutrition in foods.
 Nesquik, Koko Krunch:Chocolate milk for babies. Nesquik and Koko Krunch
contain child’s required growth. It’s very sweet and delicious and includes
vitamin protein, mineral.
 Lactogen: Nestle Singapore brings full cream milk powder in the country. It
gives baby required nutrition. Lactogen one is for child’s whose age not more
than 6months and Lectogen 3 is for babies whose age is below 1 year.
  Nescafe classic: This product is for that type of persons those who work busy and
hard and required more freshness. Both the male and female who need more
caffeine and this type of needs Nescafe classic is for them.

Psychographic:
Life style and personality: Nestle Nescafe 3 in 1 is for specially those users and
customers who are really engaged in activity and do not have more time. They can use by
taking Nescafe 3 in 1. All the things are mixed sugar, milk and coffee.

Behavioural:
Based on benefits Nestle Singapore segmented their market in an efficient way. So, they
make available Cerelac for those customers who want more profit from the product.
Cerelac includes a high nutrition for baby’s whose age is less than 1 year. Two very
important things rice, and milk remain added in Cerelac. On the other part, Cerelac
includes vitamin, more mineral and all major useful nutritious elements for babies.
Target Marketing:
Market segmentation reveals the firm’s market opportunities. Then the firm sort market
targeting by evaluating the many types market segments and deciding which and in
which quantity segments it will target.
Nescafe 3 in 1: Coffee for customers who are busy in life.
Koko Krunch, Nesquik: Chocolate milk who want to get taste of real chocolate.
Nescafe Ice: Cold coffee for the customer in hot and warm weather.
Concentrated:Through concentrated marketing, Nestlé earned a strong market position
because of its very good knowledge of consumer requirement.
In the niches it serves and special reputation it acquires. Nestlé specializes in producing
baby foods. It offers nutritious milk powder Lactogen 1 for babies whose age is less than
7 months and lactogen 3 for babies whose age is not more than 12month. It also makes
available baby nutrition Cerelac for baby more than 12 months.
Positioning Strategy:By creating product, service, channel, people and image
differentiation Nestle arrives the consumer touch point more easily, effectively &
efficiently in comparing with other competitors in the highly competitive food processing
market.
Product Differentiation: Nestle brings a many of product for target customers.
They make available 25 types of minerals in Nido for children.
It also arranged Cereals’ and Lactogen 1 &3 for newly born baby exclusively.
Now the doctors say these products for children to their parents for great & maximum
nutrition Nescafe is a product which contains 4 types of categories.
Channel Differentiation: Nestle reach their products to the customers through their
experienced market salesman and transportation. So that their productsare much easy to
their customers.
Image differentiation: Nestlé’s logo is totally different from other competitors that are
greatly choices by its users.
For that way customer easily choose them in the market which is another effective benefit
for Nestle products.
Positioning Statement Baby Products
To babies who are deprived of proper nutrition, Nido, Cerelac, Lactogen are the very
nutritious milk Product that provide you more use full nutrition different from any other
brand because these includes different types of vitamin, mineral etc.

CONCLUSION
The advent of consumer food products has brought an immense change in the field in the
consumer’s food habit. All the companies discussed have done well in adding to their
customers loyalty, operating as a market competitors’ in the dairy industry.
Their products and quality mainly include on their experience and efficiency. The above
discussed companies provide quality that leads to good business growth and good
development. They have segmented their market based on certain clustered preferences
deploying multi-stage segmentation approach to meet individual requirements of the
customers. Offering brand new products would also close its old products gaps to a great
extend promise satisfaction and loyalty.
CHEESE MARKET

Introduction:
Cheese is a dairy product derived from milk that is produced in a wide range of flavors, textures,
and forms by coagulation of the milk protein casein. Hundreds of types of cheese from various
countries are produced. Their styles, textures and flavors depend on the origin of the milk
(including the animal's diet), whether they have been pasteurized, the butterfat content,
the bacteria and mold, the processing, and aging. Other ingredients may be added to some
cheeses, such as black pepper, garlic, chives or cranberries.
Cheese is valued for its portability, long life, and high content of fat, protein, calcium,
and phosphorus. Cheese is more compact and has a longer shelf life than milk, although how
long a cheese will keep depends on the type of cheese; labels on packets of cheese often claim
that a cheese should be consumed within three to five days of opening. Generally speaking, hard
cheeses, such as parmesan last longer than soft cheeses, such as Brie or goat's milk cheese. The
long storage life of some cheeses, especially when encased in a protective rind, allows selling
when markets are favorable.

Company Profile:
1. ARLA FOODS
Arla Foods is an international cooperative based in Viby, Denmark, and the largest producer
of dairy products in Scandinavia. Arla Foods was formed as the result of a merger between the
Swedish dairy cooperative Arla and the Danish dairy company MD Food.
As of December 2014, the company had 19,000 employees across 30 countries, its revenue
accounted for USD 14.11 billion. The company has 13,400 milk-producing owners in Denmark,
Sweden, the UK, Germany, Belgium, Luxembourg, and the Netherlands.

The company sells fresh dairy products, cheese, butter and spreads, milk powder, non-dairy
products, and others. In 2014, this segment accounted for 27.1% of the total revenue. In the same
year, the company experienced some significant developments such as the rollout of one of the
biggest cheddar cheese contracts and the official opening of fresh milk facility at Aylesbury, UK.
In 2014, this segment accounted for 19.13% of the total revenue, indicating an increase of 10.8%
over 2013. This significant increase in revenue can be attributed to the synchronization of
business systems and programs, the right approach to markets, and the implementation of supply
chains. In the same year, the company also merged with EGM Walhorn

2. FONTERRA

Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned
by around 10,500 New Zealand farmers. The company is responsible for approximately 30% of
the world's dairy exports[4] and with revenue exceeding NZ$17.2 billion is New Zealand's largest
company.

Fonterra was established in October 2001 following the merger of the country's two largest dairy
co-operatives, New Zealand Dairy Group and Kiwi Cooperative Dairies, with the New Zealand
Dairy Board. The name Fonterra comes from Latin fons de terra, meaning "spring from the
land".

As the world’s largest exporter of dairy, their products are enjoyed by hundreds of millions of
people in more than 140 countries. In everything they do from farms to families, they take great
care to protect the natural goodness of dairy.

3. KRAFT HEINZ COMPANY

In 2015, the Kraft Foods Group completed the merger with Heinz to become The Kraft Heinz
Company. With the merger, both companies try to diversify their product and brand portfolio in
order to appeal to changing U.S. consumer tastes. Co-headquartered in Pittsburgh and Chicago,
The Kraft Heinz Company was rated as one of the leading food and beverage companies in
North America in 2016.
VALUE PROPOSITION AND POSITIONING
1. ARLA FOODS
They want to develop their role as a global food company that adds value to people’s lives
through natural nutrition and responsible operations.
In order to succeed, the organization will:
 Excel in eight dairy categories
 Focus on six geographical regions
 Win as one united and efficient Arla
a) Excel in eight dairy categories
They have matched their own strengths in the dairy categories to the consumer needs we see
globally.
This has led us to identify growth opportunities on a global or regional scale in eight categories.
In these, they would want to excel with innovative products, a world class supply chain,
compelling marketing and strong partnerships with their customers.

The prioritized categories and ambitions for them are:

Milk and powder: To lead and shape the market with nutritious value-added products.
Milk-based beverages: To shape the market for on-the-go products that are made from natural
ingredients.
Spreadable cheese: To be a leader with both cream cheese that is made from natural ingredients
and high quality processed cream cheese.
Yogurt: To build a strong position that is based on health benefits and natural ingredients.
Butter and spreads: To be a global leader with world class products made from natural
ingredients.
Speciality cheese: To be a leading player with creatively crafted products and concepts.
Mozzarella: To create a global foodservice position with high quality mozzarella.
Ingredients: To be the global leader in value-added whey.

b) Focus on six regions

They focus on six regions in which they believe Arla has the greatest potential to grow a long-
term profitable business for their farmer-owners.
Over the years Arla has built a strong position in Northern Europe where they are the preferred
dairy company for consumers, and the Middle East where our brands are among the strongest in
the food industry. They will continue to build on these market positions as they also develop the
business in four other regions and China, Nigeria, USA and Russia as their main focus markets.
Towards 2020, Arla expects 50 percent of the growth to come from Europe. The other 50 percent
will come from the regions outside Europe.

c) Win as one Arla

Over the past years Arla has grown significantly in Europe with no less than six mergers in
Central Europe, the UK and Sweden. They have been aligning the different companies into one
and harvesting the synergies that the mergers created.
The marketing will become more global, improving the spend effectiveness and driving more
radical innovation across the six regions.
The entire supply chain will be even more efficient as they will establish one European milk pool
to ensure a more holistic use of our milk across the Arla group.
Overall, Arla group have set a new ambitious cost improvement target of EUR 400 million to be
reached by the end of 2019.

2. FONTERRA
In contrast to the smaller players, Fonterra has a much more diverse strategy. Fonterra is the
world leader in relation to cross-border trade in commodities and dairy ingredients. This
dominance arises not only from the marketing of products produced in New Zealand, but also
from marketing milk produced elsewhere. In the case of Australia, Fonterra processes milk
within Australia and then markets the products both within Australia and internationally. In some
other countries, such as the USA, Fonterra’s role is limited to international marketing of products
produced there by other companies.
Fonterra has a significant share of this chiller-cabinet market in Australia (one recent industry
estimate is 21 percent) and also has strengths in some parts of South Asia (such as Sri Lanka)
and South East Asia (such as Malaysia and Singapore). But overall, Fonterra is a small player
with no brands that could support claims of being ‘global’.
 The product mix of Fonterra consists of

 Anchor (milk, cream, butter)

 Anchor CalciYum (flavoured milk, custard yoghurt, ice cream)
 Anchor Greek Yoghurt
 Anchor Uno (Kids yoghurt)
 Country Goodness (butter-margarine blend spread, cultured sour cream dips)
 De Winkel (yoghurt)
 Fresh 'n Fruity (yoghurt)
 Galaxy (specialty cheese)
 Kapiti (ice cream, specialty cheese)
 Mainland (cheese, butter)
 Mammoth Supply Co. (flavoured milk)
 Perfect Italiano (Italian cheese)
 Primo (flavoured milk)
 Symbio Probalance (probiotic yoghurt)
 Tip Top (ice cream)

3. KRAFT HEINZ COMPANY

Kraft Heinz provides value to its customers in the following ways:

 Its reputation and industry standing, with the Company established as one of the largest
consumer goods manufacturers and distributors in the world, with a long-standing reputation for
reliably producing high-quality products;

 Its broad product and brand portfolio, with the Company manufacturing and distributing a
broad range of grocery products, including condiments and sauces, cheese and dairy, meals,
meats, refreshment beverages, and coffee, under various high-profile brands, such as Velveeta,
Oscar Meyer, and Philadelphia;
 Its international sales and marketing reach, with the Company serving a large domestic
customer base in the US, as well as an extensive network of customers across Latin America,
Europe, Asia Pacific, the Middle East, and Africa;

 Its extensive manufacturing and distribution infrastructure, with the Company owning and
operating its own network of production and distribution facilities, that enables the Company to
serve customers quickly and efficiently; and

 Its research and development activities, with the Company committed to innovation, dedicated
a significant portion of its funds each year to research and development activities.
 The majority of Kraft Heinz’s sales, however, are made to retailers and distributors through its
in-house direct sales force, which consults directly with customers across the world to establish
the details of each individual sales and distribution contract. These contracts can often span
several years, with the Company providing personalised service to its large customers through
dedicated account and relationships management personnel in order to secure long-term
relationships.
 Kraft Heinz provides ongoing support to its customers, who are able to contact the Company’s
various departments directly over the phone, via email, or through an online contact form,
enabling customers to access personalised support. The Company also provides a range of online
resources, largely directed at consumers, including recipes, and media releases and coverage.
 Additionally, Kraft Heinz and its various brands operate a number of social media accounts –
including with LinkedIn, Facebook, and Twitter – through which it can interact directly with
customers and issue updates on corporate activities.

KRAFT’S RECIPES:
 Block & Hard Cheese.
 Cheese Sauce.
 Cottage Cheese.
 Cream Cheese.
 Melting Cheese.
 Ricotta Cheese.
 Shredded, Grated & Crumbled Cheese.
CONCLUSION:
The cheese market has been one of the most dynamic food segments in the last 20 year with
steady growth in production, consumption and international trade. In 2009, the world cheese
production exceeded the 20 million mark and approximately 1/3 of the world cow milk
production is processed into a wide range of different cheeses. This is more than the yearly
production of coffee beans, tea leaves, cocoa beans and tobacco combined. These are the
highlights of the global cheese market until now, but the future will create a lot of changes. The
cheese production will increase in significantly in the emerging economies and so will the
demand and consumption of cheese. New players will also enter the world market for cheese
both on the export and import side. The demand will diversify from mainstream cheeses to a
more polarized demand for added value cheeses to cheap discount cheeses. This also paves the
way for increased production of analogue cheeses to the discount segment. The growth of food
service and the food industry in many parts of the world also changes the demand for cheese
types and in general it also increases the demand for cheese.
BUTTERMILK MARKET

Introduction

For those who haven’t been introduced to this creamy concoction yet, buttermilk is actually the
liquid that is collected when cream is churned and butter is produced. In India, it is made by
adding water to yoghurt and straining the whey through a muslin cloth to do away with thick
cream or butter. Also known as chaas or chaach, it's a refreshing finish to any meal. The one
from South India, called Neer More, uses asafoetida and curry leaves along other ingredients.

Since buttermilk is collected after the butter has been removed, it is lower in fat and calories. It is
a great digestive and helps in reducing acidity after a heavy meal by washing down the fat and
oil that coat the lining of the stomach. Besides this, spices like ginger and pepper used to flavour
the drink also help in improving digestion. A soothing glass of buttermilk relieves stomach
problems like indigestion and constipation, and fights dehydration

We picked some of the leading brands of spiced buttermilk that were easily available in general
stores and supermarkets. We tried our best to find buttermilk packs that were manufactured
around the same dates. Few were several days older than others, but all within the best-before
date. Interestingly, some of them were said to last for only 15 days in contrast to others that were
mentioned could last for as long as six months. This could also be due to the difference in
packaging.

Competitors
Mother Dairy, Amul, Danone, Nestle, Param, Parag

Segmentation
We blind tasted all brands to find the distinct differences and rate them. The tasters gave their
personal scores and feedback which were later compiled to get the average results. We used
cookies as palate cleansers. All brands were served at room temperature.
Each of them were segmented on the following three parameters
Flavour: Buttermilk is slightly sour and acidic which is due to the presence of lactic acid. It’s
tangy without cloying sweetness.
Texture: You’d want your drink to be smooth. It should be creamy but not artificially slimy.
Freshness: Was the first sip crisp and cool or stale and artificial?

What does the nutritional label say? After the taste test, we took a quick look at the back of the
packs for calories given the fact that some of you may consume this drink daily. We found that
the sodium content is one of the main ingredients along with added flavours and preservatives.
We have to confess, this exercise is always full of surprises.
The Results

Brand 1 – Param

This was slightly sour and tasted more like watered curd. It lacked flavour and freshness. The
runny texture and bland taste were quite a disappointment.

On the label: Param was high on calories in comparison to others (28kcal per 100ml). There was
no mention of the sodium content on the pack.

Brand 2 – Amul

The preferred one! The texture was creamy, smooth finish – not too thick or thin. The flavour
was nice and tangy with a great balance of masalas. Despite the fact that it is sold in Tetra Pak®
and is on the shelves for longer (best before six months), it scored highest in terms of freshness
especially when compared to Mother Dairy and Nestle that would last only for 15 days. Some
felt that it could do with a tad less salt.

On the label: No added preservatives and sugar. Surprisingly, it contained the highest calories
(29.3kcal per 100ml). There was no mention of the sodium content but common salt is one of the
ingredients.

Brand 3 – Go Buttermilk by Parag

Parag buttermilk lacked the inviting aroma of spices. It had a weird fizzy, cola-like aftertaste
and the flavour seemed synthetic. The texture was light. Most tasters found it to be quite salty.

On the label: No added preservatives. After Amul and Param, Parag buttermilk contained the
most calories (25kcal per 100ml). The sodium content was 250mg.
Brand 4 – Danone

This one was dismissed by most tasters. It was pungent maybe due to excessive cumin and salt.
It also had a bitter after taste. The texture was runny. Plus, it was more expensive than the other
so not too friendly on the purse either.

On the label: No added preservatives. It contained the least calories, same like Nestle’s
buttermilk (17kcal per 100ml). The sodium content was 235mg. This was also the one brand that
highlights the fact that it uses only natural ingredients everywhere on its pack.

Brand 5 – Mother Dairy

Another stunner, this one was light yet lively. It was a good blend, buttery and well spiced,
though some felt it could do with more masala which is why they preferred Amul. Some tasters
found it to be slightly grainy.
On the label: No mention of the sodium content and the calorie content was decent in
comparison to others (18kcal per 100ml).

Brand 6 – Nestle

Nestle's buttermilk pack lists 'mint' as a special ingredient but you can't taste the mint at all. It
just has a distinct aroma which suggests there's mint in there. It also had a strange taste,
somewhat overpowering and chemical-like. It was mildly fresh.

On the label: Again, the sodium content was not mentioned and it contained the lowest calories
(same as Danone’s – 17kcal per 100ml).

Conclusion

If you go for the taste, Amul excelled. However, calorie-wise it’s not the best choice. Nestle and
Danone contained the least calories but majorly lost out on flavour. Our second favourite was
Mother Dairy that only lacked the fresh feel when compared to Amul.
Yogurt Market Segmentation

Yogurt market is segmented on the basis of product type, which includes regular yogurt and fat
free yogurt. Among both of these segment regular yogurt is expected to occupy the largest
position on the pie in terms of revenue contribution. However rising awareness among the
consumer regarding the consumption of healthy and fat free products is expected to support the
demand of fat free yogurt product segment in the near future.

Yogurt market is further segmented on the basis of form, which includes set yogurt, frozen
yogurt, Greek yogurt and yogurt drinks. Among these entire set yogurts occupied the major
position on the pie in terms of market share. High usage of set yogurt in various cooking recipe
and consumption as a dessert is contributing towards the growth of set yogurt product segment.
However frozen yogurt and yogurt drinks is expected to show a healthy growth during the
forecast period. Frozen yogurt is further sub segmented as regular and flavoured. Among both
of these sub segment flavoured yogurt is expected to show a fastest growth during the forecast
period. Also, yogurt drinks is sub segmented as regular and flavoured yogurt. Increasing
availability of various fruit flavoured yogurt with health benefits is expected to support the
demand of flavoured frozen yogurt and flavoured yogurt drinks in the near future.

Yogurt market is also segmented on the basis of distribution channel, which comprises,
supermarket/ hypermarket, grocery stores, convenience stores, online and others. Among all
these segments supermarket/hypermarket is expected to occupy the major share on the pie in
terms of revenue contribution. Increased penetration of retail industry especially in developing
region is expected to support the growth. Moreover, purchasing of yoghurt through online is
expected to show a substantial growth during the forecast period. Increasing Internet
penetration and urge of consumers towards convenience purchasing of product is predicted to
be the driving factor for online purchasing in yogurt market in the near future.

Geographically, North America is expected to be the major contributor in terms of value

followed by Europe in yogurt market. However, this region is predicted to be a mature market
for set yogurt, and is expected to show a stable growth in the near future. Introduction of new
variant in flavours coupled with offering low fat products may fuel the growth of yogurt market
in these regions. In developing countries of Asia Pacific region China is expected to dominate
the market in terms of yogurt consumption followed by India. Moreover Japan is expected to
 show a substantial growth during the forecast period. Increasing consumption of flavoured
yoghurt especially in countries such as China and Japan is predicted to support the growth
yoghurt market across Asia Pacific region during forecast period.

Yogurt Market Drivers

Rising disposable income coupled with shifting consumer-eating habits is expected to drive the
demand of yogurt market in the near future. Moreover, increasing availability of flavoured
yoghurt especially in developing region is predicted to be major factor supporting the growth of
ice cream and frozen dessert market during the forecast period. In addition, rising awareness
among the people regarding the benefits of yogurt such as it has good bacteria or probiotics that
boost the immune system, provide calcium, and help combat constipation and diarrhea and
others is also expected to drive the growth of yogurt market in the near future.

Value Proposition

NESTLÉ a+ GREKYO

NESTLÉ a+ GREKYO Yoghurt provides calcium and has low fat. low-fat yogurt, which is made
by fermenting low-fat or skim milk, is a healthy addition to most people's diets. Low-fat yogurt
is not only low in calories, but it also has plenty of beneficial nutrients and probiotics that can
boost your overall health. Body needs calcium to build and maintain strong bones.
Your heart, muscles and nerves also need calcium to function properly. Some studies suggest
that calcium, along with vitamin D, may have benefits beyond bone health: perhaps protecting
against cancer, diabetes and high blood pressure

DANONE Yogurt
Growth, at the core of the business model
Positioned in the most dynamic categories of the food and beverage industry, DANONE has a
strong leadership position in all its markets.
The Company relies on a unique portfolio of strong brands, solid execution capabilities in terms
of innovation, brand activation and the development of new distribution channels.
Generating profitable growth

In an increasingly volatile and complex environment, DANONE strives to strengthen its model
of growth through disciplined resource allocation, efficiency gains and cost optimization with a
permanent balance in managing the short, mid and long-term horizons.
The company therefore favours strategic growth opportunities that create long-term value over
tactical short-term allocations.

Launch of an efficiency program: generate cost savings to fuel growth

In that context, DANONE launched an efficiency program called Protein on its selling, general
and administrative expenses. The program aims to strengthen the Company’s competitiveness by
generating cost savings of €1 billion by 2020. The program consists of incorporating sustainable
efficiency into the Company’s business model, and creating the best conditions to spend better,
buy better and work more efficiently. DANONE will reinvest a significant portion of the gains in
growth to support the implementation of its strategy and mission.