SOUR MILK: A CASE STUDY OF POOR DAIRY MARKETING

The pitter-patter of raindrops against the barn's tin roof provided a rhythmic backdrop
to Arturo's thoughts as he surveyed his dairy farm. The rain, a welcome relief from the
blistering heat of summer, seemed to mirror the tempest brewing within him. For years, his
cooperative, the pride of his community, had been silently struggling, its growth stunted by a
glaring absence: a dedicated marketing arm.

Mr. Arturo became the chairman when the cooperative was being renamed in 2002,
he is a man who had poured his heart and soul into building a thriving dairy operation. Under
his leadership, the cooperative had flourished its dairy products by collaborating with
institutional buyers throughout the city. The cooperative caters the feeding programs that are
initiated by the local government. But as times changed and the market evolved, the lack of a
marketing strategy became an Achilles' heel, hindering the cooperative's ability to reach new
consumers and expand its reach.
Mr. Arturo knew the cooperative's potential, the quality of its products, and the
dedication of its members. Yet, without a strategic marketing approach, their efforts were
being stifled, their potential unrealized. The dairy cooperative's centralized organizational
structure, with decision-making power concentrated at the top, may be hindering its ability to
effectively promote its products and reach a wider customer base. This centralized structure
could lead to a lack of focus on marketing, slow response to market trends, limited
understanding of the customer base, lack of innovation in marketing approaches, and
inefficient resource allocation. The absence of a dedicated marketing department hindered
the cooperative’s ability to effectively promote their products and reach a wider customer
base. Without a strategic marketing plan the cooperative has failed to identify and target key
market segments resulting in missed opportunities to attract new customers and increase
brand awareness. Moreover, the lack of sales growth has limited the cooperative's revenue
and hindered its ability to invest in new technologies and expand its product offerings.

The hiatus in terms of absence of a marketing department was no longer an option; it

was a deficiency that needed to be addressed within the organization. The cooperative's
success depended on it, and Arturo, as its chairman, was determined to lead the charge. He
has to examine the cooperative’s production and sales processes more thoroughly and align
his objectives with the organization’s structure. The cooperative should consider
decentralizing its decision-making process and giving more autonomy to lower-level
employees. It can improve the marketing of the cooperative at the same time the
performance of dairy products.