ALMARAI: ENTERING THE INDIAN DAIRY MARKET

PRESENTED BY:JONATHAN LAKRASHREYA GUPTA(GROUP NUMBER 33)CONTENTS:

1. Introduction2. Product range3. SWOT analysis4. STP analysis

INTRODUCTION

Almarai was established in Riyadh, in the kingdom of Saudi Arabia in 1977.today almarai is the largest vertically integrated dairy company in the world.it is a public company, with headquarters in Riyadh, Saudi Arabia. Its revenue being 10 billion Saudi riyal.its current chairman and CEOare sultan al kabeer and Georges schorderet respectively.MISSION:To provide quality foods and beverages to enrich consumers life everyday.VISION:To become consumers preferred choice by leading in chosen markets with superior food and beverage products.VALUES: Adaptable-we are agile and flexible in our work, confidently taking bold decisions that benefit our stake holders. Sharing-we work together as one, openly collaborating and sharing skills and knowledge to enable our people to be the best. Passionate-we are of the work that we do and thrive for exceptional results. Innovative-we are driven to improve our business everyday and to maximize the creative potential of our people. Respect-we earn respect by embracing fairness, trust and integrity in all our relationships. Excellence-we are diligent in our work and consistently deliver the best quality in everything we do.

BRANDS: almarai has a total of five brands. Namely- Almarai Alyoum Lusine 7Days nuralacPRODUCT RANGE:Almarai is the key brand of almarai.it has wide fame. The strength of the almarai brand is fundamental to the enduring success of the group and the significant growth achieved over many years. Under the almarai umbrella brand the company offers a range of foods and beverages including: dairy liquids foods juices yoghurts and desserts.The product range that we would like to introduce in the Indian market would be-DAIRY LIQUIDS.The key characteristics of almarais dairy liquids are-freshness and long living.The product range would comprise of the following products: FRESH MILK-almarai understands the importance you place on only consuming premium quality milk. that why we have set the highest standards possible, with optimum nutrition content.

FRESH FLAVOURED MILK(chocolate, mango and strawberry)-full of essential nutrients and minerals, they are a great source of strength and vitality for the family.

Milkshakes(vanilla, white chocolate, mocha)-it has a creamy and a delicious taste with a foamy texture that come alive when you shake the bottle.it is a delicious source of calcium, vitamins and minerals.

The general sizes would be: 2 liters 1 liter 500 ml 200 ml 180 mlbasic nutritional information(per 100ml) energy 58 kcal/240kJ fat 3.1g protein 3.1g carbohydrate 4.7g calcium 100mg vitamin A 2ooo I.U./liter vitamin d3 400 I.U./literinitially the products mentioned above will only be introduced in the Indian market, as after extensive marketing research these products are considered to be the most viable. Apart from that these products are the core items of the company. We plan on introducing a range of products in the future.

SWOT ANALYSIS:Strengths: a market leader in the GCC and the only fresh dairy prodder available in the gulf region a market share of 60% in 2010. Less wastage percentage as compared to other competitors, which results In a higher efficiency. Almarai has an effective quality control system that is operated by:1. An integrated supply chain2. Marketing and sales expertise3. Effective distribution network4. Advanced technologies in farms,processes,and engineering. Mergers and acquisitions(aiyoum,7-days,lousine)Weaknesses: Limited market share in the gulf region The company is mainly dependent on a single brand name almarai.therefore, in case of any incident, the company cannot fall back upon alternate brand to keep selling its products.Opportunities: In future, the union of GCC will eliminate the cost of currency exchange. In future, the export and import duties will be reduced or eliminated which would boost up the companies revenues. Low interest rates increase investment in the companys business lines Increased awareness of health from consumers increases the consumption of dairy products. The rapidly increasing population in the Indian subcontinent will affect the sales of the company. India is one of the largest dairy markets that would give the company immense scope to prosper.Threats: The subsidies of oil may affect the market of almarai Fresh dairy products have a limited life of six days which acts as a disadvantage and gives over preference to long lasting packed food. Leading dairy brands like AMUL,mother dairy etc. would act as fierce competitors for the company. Indians deep trust and satisfaction in the already existing Indian dairy brands would make it difficult to penetrate the market.

MAJOR CHALLENGES: Firstly, the company will have to comply with the Indian rules and regulations. It will have to strictly obey the specified laws by food safety and standard authority of India and national dairy development board. The company will have to hire local workers which might be a challenge due to the vast regional and language barriers. Training them and making them familiar with the companies work environment wont be easy. India is a culturally diverse country because of which demands and aspirations of different sectors will have to be studied and implied separately. The Arab market is a highly conservative market which contrasts with the Indian market. Indian market is a highly price conscious market. Leading Indian dairy companies like amul and mother dairy would give the company fierce competition. Indian population is ,to a great extent satisfied with the existing Indian dairy companies that would further make penetration in the market difficult. Extensive research and development will have to be carried out in order to pre determine demand. A considerate level of corruption prevails in the Indian market that would obstruct the companies growth. Customized marketing rather than global marketing will have to be practiced.

STP analysis:

Segmenting-the economy of India is the twelfth largest in the world.it is the third largest in respect of purchasing power parity.it has a GDP growth rate of Targeting-the targeted segment is from infants to people aged up to 40 years.PositioningWe position ourselves as a high-end firm with large scope of expansion.