How does a Danone Dumex ( Malaysia ) Sdn Bhd SHAMSUDIN, SITI AKMAZNI maintain the trade name ‘s competitory border?
1.0 Introduction
1.1 COMPANY BACKGROUND
Danone Dumex [ 1 ] is portion of Groupe Danone, a Fortune 500 company which was operate since 1958, one of the most successful healthy nutrient companies in the universe. Its headquartered is in Paris, France. Besides, Danone Dumex manufactures infant and child nutritionary merchandises and these merchandises are so distributed in Singapore and Malaysia with exports to twenty states in Asia, Middle East, Africa and Europe. It is the market leader and ranked figure one in overall client satisfaction in a survey conducted among medical professionals and the retail trade by AC Nielsen. Then, it is besides named as a Top Three Brand Family by AC Nielsen in 2002 and 2003, every bit good as Best Employers in Malaysia for 2003 and 2005.
1.2 Justification of the subject
In this appraisal, I have choose Danone Dumex company because it has higher market portion that lead it become a market leader in infant turning milk expression industry. As a maker of baby and child nutritionary merchandises, all its merchandises provide the right nutrition for optimal growing and development particularly back up a good digestive system of kids at different phases.
Besides, this company has an international relationship with Singapore, Brunei, Middle East and Africa in exporting its merchandises. Therefore, here, we can state that it is a transnational company in this industry. So, because of this, I want to look into and make research about this company in this appraisal.
2.0 Findingss
2.1 New logo and packaging
Recently, Danone Dumex ( Malaysia ) Sdn Bhd is believing to rebrand its merchandises. In this rebranding, Danone Dumex alteration logo and packaging [ 2 ] . The packaging was modern, dynamic and modern-day expression and experience harmonizing to the Danone Dumex ‘s gross revenues manager, Joris Bernard and GCH Retail ( M ) trading manager, Ian Cruddas [ 3 ] .
2.2 Long-relationship with Malayan parents and kids
Danone Dumex besides want to pass on and mark long-run relationship with Malayan parents, kids and with the people outdoors. As it has a new trade name individuality, this will take to client ‘s trueness to its merchandises [ 4 ] . Hence, this sale of new merchandise of Danone Dumex will hike its market.
2.3 Monetary value
Normally, as a market leader, the monetary value of the merchandises will be addition. But, for this company, Danone Dumex merchandises are expected to non increase in monetary value. It thinks and confident that the gross revenues of its merchandises will hike the markets and therefore, cover its likely loss [ 5 ] from the cost of production, publicity and cost to publicize the merchandises.
3.0 ANALYSIS OF THE ISSUES
3.1 Current Situation
Product life rhythm [ 6 ] is used in this analysis to demo points at which concerns may necessitate to see establishing new merchandises, as older 1s are in diminution, let a concern to be after different manners of selling, assist a concern to pull off its merchandise portfolio and place points at which extension schemes may necessitate to be introduced or should no longer sell a merchandise. ( Dave Hall, page 179 ) .
Hence, in this state of affairs, Danone Dumex merchandises now in adulthood phase because its merchandises have become established with a stable market portion, as a market leader ( Dave Hall, page 116 and 117 ) and the gross revenues are clearly higher than any viing concerns in the same market ( Peter Stimpson, page 135 ) .
Introduction Growth Maturity Saturation
3.2 New logo and packaging
As a market leader and its merchandises are at adulthood phase, the rivals will come in the market to take advantage of net incomes. Therefore, Danone Dumex decided to rebrand its merchandises because it wants to keep the trade name ‘s competitory border [ 7 ] where it is one of the advantages of rebranding. ( Dave Hall, page 204 and 205 ) . These can let people and clients outside watchful rapidly with its merchandises and expected the new gross revenues will hike the gross revenues of the merchandises [ 8 ] .
3.3 Long-relationship with Malayan parents and kids
The launch of its new trade name individuality had cause Danone Dumex to both communicate and mark their long-run relationship with Malayan parents and kids [ 9 ] . When holding a long-relationship with Malayan parents and kids, this will assist this company to acquire back in path and the new gross revenues of the merchandises will hike the gross revenues.
3.4 Market leader
From the article [ 10 ] , Danone Dumex is the market leader in infant milk expression in Malaysia, which besides has a market portion about 40.9 % in the year-to-date June period 2009 in the Standard Growing up Milk ( GUM ) . It is besides presently sells and exports its merchandises to Malaysia, Singapore, Brunei, Middle East and Africa [ 11 ] that cause it to hold higher market portion and turning in market. Bing a market leader, it will accomplish the competitory border because competition has become stiff for participants in the turning up milk expression industry and this will non be a hazard faced by this company.
3.5 Monetary value
The merchandises can be expensive to advance and keep the trade name. An set uping a successful trade name in a competitory market can be really dearly-won. Small concern may non be able to afford this. ( Dave Hall, page 202 ) . Cost of production, publicity and market the merchandise will be higher as it is a new looks merchandise. But in this state of affairs, Dumex does non be after to increase monetary values of its merchandises [ 12 ] . As a consequence, Danone Dumex ‘s merchandises are staying in deriving the net income because of the trueness client in purchasing Danone Dumex ‘s merchandises [ 13 ]
3.6 SWOT Analysis of Danone Dumex
To see the job faced by this company clearly, I use SWOT analysis to entree the present place of this company, the hereafter or expected possible alterations.
Strength
Failings
* Market leader [ 14 ] in milk expression industry ( S1 )
* Loyalty clients ( S2 )
* Healthy merchandise for babies and kids ( S3 )
* Costly because has invested more than RM4 million in its new expression venture ( W1 )
* The monetary values for the new-look merchandises are remains unchanged that will supply rather high loss and necessitate more money to endorse up back the invested money for the new-look merchandises. ( W2 )
* Danone Dumex usage above the line publicity ( W3 )
Opportunities
Menaces
* Long-term relationship between Danone Dumex and Malayan parents and kids. ( O1 )
* Loyalty clients ( O2 )
* Many rivals ( T1 )
* Economic downswings ( T2 )
* The resources and natural stuffs expensive ( T3 )
Table 2 shows the SWOT analysis, the current and outlook of Danone Dumex
SWOT analysis shows the current and outlook of Danone Dumex ‘s merchandise. Danone Dumex is a market leader ( S1 ) in baby and turning – up milk expression industry that can be strength of this company in its market. This is because there will be no strong competitory border where can do this company acquire loss. Besides that, although it is a market leader and rebranding its merchandises, it does non expected to increase the monetary value of its new rebrand merchandise. Hence, all these are the strength of Danone Dumex besides it has loyalty client ( S2 ) to its merchandises and its merchandises are prove as a healthy merchandise [ 15 ] ( S3 ) for babies and kids.
However, this company besides has a few failings likes it has spent a batch which is more than RM4 million in its new expression venture [ 16 ] ( W1 ) . So, this is the most hazardous ways of Danone Dumex to be faced as the monetary values for the new expression merchandises are remain unchanged [ 17 ] ( W2 ) and used above the line publicity ( W3 ) that is rather dearly-won and expensive as its promotional method to publicize the new expression merchandise.
The menaces, the chances are the outlook that will confront by this company in the hereafter whether it will derive more net income or loss. The chances that will confront by this company are the long-run relationship between this company and Malayan parents and the kids [ 18 ] ( O1 ) and the trueness client ( O2 ) for its new rebrand merchandises. As these chances are faced by Danone Dumex, its outlook to non increase the monetary value for the new expression merchandise will hike the market that can endorse up the invested money and prevent more loss for this new expression merchandise.
Then, in conclusion is the menace or the bad outlook that will be face by this company. The first menace is there will be many rivals ( T1 ) enter into the same market as Danone Dumex. Then, if there is economic downswings ( T2 ) in any state, the unemployment will be addition, the purchasing power of the clients will be lessenings and therefore, doing Danone Dumex to has loss. Besides, the other menace is the resources and natural stuffs are expensive ( T3 ) in the hereafter as the natural stuffs are hard to acquire and happen.
Decision
With the committedness and willing to take the hazards, it is believed that Danone Dumex will hike its gross revenues as it rebranded its new-look merchandises. This is because it is a market leader in this industry, has high market portions and the gross revenues are besides clearly higher as it exports its merchandises to the other states likes to Malaysia, Middle East, Singapore, Brunei and Africa. Even though its monetary value is staying unchanged, the trueness client and the well-established merchandise of Danone Dumex in this milk expression industry have made its gross revenues hike the market and addition net income. This is the strength of Danone Dumex as the market leader and has high market portion [ 19 ] as shown and explained in SWOT analysis. Hence, for me, there will be no job for Danone Dumex in get net income and keep its competitory border.
In add-on, from my study [ 20 ] , it is proven that Danone Dumex ‘s merchandises are healthy for infant and growing-up milk expression industry, has higher per centum of the trueness client to its merchandises and most of the clients are afford to purchase and pass for the sensible monetary value for the new expression merchandises. So, even though Danone Dumex is still market leader, has loyalty client towards its merchandises, it can non halt or avoid the outlook and coming menace that will act upon its gross revenues in the hereafter. Hence, does Danone Dumex still can keep its competitory border in the hereafter?
Bibliography
General Texts
1 ) Dave Halls @ Rob Jones @ Carlo Raffo @ Ian Chambers and Dave Gray, 2004. Business Studies ( Third Edition ) Legoprint, Italy. Consuming 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 hypertext transfer protocol: //www.dumex.com.my/about_us
5 ) Danone Dumex ‘s article, ‘Danone Dumex Quality Assurance ‘ retrieved from hypertext transfer protocol: //www.dumex.com.my/whats_new_2009/article/2009_Quality_Assurance
6 ) Unknown writer, ‘Danone Dumex Melamine-Free Shanghai Regulator Says ‘ retrieved from hypertext transfer protocol: //www.bloomberg.com/apps/news? sid=aSE8M3rTXulw & A ; pid=20601080
7 ) Unknown writer, the other research sing the rebranding procedure hypertext transfer protocol: //www.google.com/hostednews/afp/article/ALeqM5h7VgLkRxkbLdTKu21W3Y6KGIH1Q
8 ) Unknown writer, ‘Global Baby Food Market ‘ retrieved from hypertext transfer protocol: //www.bharatbook.com/Market-Research-Reports/Global-Baby-Food-Market.html
9 ) Unknown writer, ‘Breaking The Rules, Stretching The Rules 2004 ‘ retrieved from hypertext transfer protocol: //www.ibfan.org/english/pdfs/btr04.pdf
10 ) Lenny, Bernama, ‘Players in turning up milk expression market face stiff competition ‘ retrieved from hypertext transfer protocol: //besonline.rtm.gov.my/details.php? id=2468 & A ; pageno=3 & A ; field=bu_Title & A ; order=ASC & A ; title=Business/Economy
11 ) Unknown writer, ‘About Us-Danone Dumex ‘ retrieved from hypertext transfer protocol: //www.dumex.com.my/about_us
12 ) hypertext transfer protocol: //www.hotfrog.com.my/Companies/Dumex-M
13 ) Unknown writer, ‘About Us- Danone Dumex ‘ retrieved from hypertext transfer protocol: //www.dumex.com.my/
14 ) Unknown writer, ‘Danone Dumexs merchandises sport a new expression ‘ retrieved from hypertext transfer protocol: //biz.thestar.com.my/news/story.asp? file=/2008/7/8/business/21761434 & A ; sec=business
Title of the article: Business Leaderships say Rebranding is Key to Recovery
Beginnings: Article from web site of Britannica Online
Date: 14th February 2009
Web site:
Writer: Tom Banks
Business Leaderships say Rebranding is Key to Recovery
Design Week, February 12, 2009 by Tom Banks
Summary:
The article focuses on importance of rebranding and design to contend against economic recession and aid concern recovery in Great Britain. It states that rebranding helps concern leaders to accomplish a competitory line and committedness to its services and concerns. It besides notes that rebranding construct a new relationship with the clients and the concerns.
Excerpt from Article:
Newss in Depth
Business leaders say rebranding is cardinal to recovery By Tom Banks A bulk of UK companies see a successful rebrand as a cardinal manner of enduring the recession, harmonizing to new research. Implementation, Rebranding and Design, a study commissioned by branding consultancy the Principle Group, surveyed 250 selling managers of bluish bit companies and UK concern proprietors, and found that the bulk recognise the importance of rebranding in a downswing and acknowledge the function of design in helping concern recovery. Levels of assurance varied across the study, but it found that 65 per cent of concern leaders and directors believe rebranding will assist big corporate establishments get back on path, and 85 per cent say design will play an of import function in bring forthing a recovery for some, or all, trade names.
A successful rebranding was seen by 64 per cent of UK concern leaders as a path to deriving ‘a competitory border in a downswing ‘ . Similarly, 63 per cent agreed that a new individuality signified ‘a bold embrace of alteration ‘ . Commenting on the research, Ron Cregan, concern scheme manager at consultancy Navyblue, says, ‘Any trade name with the appetency to develop its trade name individuality in a recession demonstrates a willingness to dispute the market and a committedness to its concerns, services and merchandises. ‘ But he adds that many companies will ‘restrain their trade name and selling spend ‘ , for fright of being seen to be ‘spending while people are …
Supporting Document 5
( Primary Data )
Survey: Awareness of the Malaysians Towards Danone Dumex ‘s Products Especially Its New-Look Products.
Date: 25th October 2009
I am an IB pupil of MARA College Seremban and I am making research about the consciousness of the Malaysians towards Danone Dumex ‘s merchandises particularly its new-look merchandises. Thus, I need your aid in make fulling out these questionnaires. Click the box with v and reply the inquiries.
1 ) Gender:
Male Female
2 ) Status
Married Single
Widow/ widower Others
3 ) What are the instant milks for babe that you know in our industry?
4 ) What sort of instant milk for babe that you or your household had chosen before this?
Fernleaf Danone Dumex
Nestle Others
5 ) Why you use the same instant milks for your whole household?
6 ) Annual household income:
Less than RM1000 RM 5001 – RM 10000
RM 1001 – RM 5000 RM 10,001 and above
7 ) Normally, how much you or your household ( ma or pa ) spent for the instant milks?
For these inquiries, tick v for your replies for these statements.
Statements
Strongly cognize
Know
Not certain
Does n’t cognize
Strongly does n’t cognize
8 ) Do you cognize any merchandises from Danone Dumex?
9 ) Have you try to any its merchandises?
10 ) Do you detect that Danone Dumex has a new-look merchandises?
11 ) Danone Dumex merchandises contained DHA ( docosahexaenoic ) and AA ( arachidoinic acid ) that were of import for encephalon cells. Do you cognize with these statements?
12 ) Danone Dumex contains 1c-FOS ( long-chain fructo oligosaccharides ) dietry fiber and indispensable foods that help back up a good digestive system.
13 ) Danone ‘s Dumex milk is melamine-free.
14 ) For all the advantages of holding Danone Dumex merchandises that I have listed above, do you and your household want to seek and utilize Danone Dumex merchandises?
Findingss
1. 78 % purchasers are married individual and the other 22 % is bought by widow/widower and individual individual who are the siblings of the kid.
2. 69 % purchasers bought Danone Dumex ‘s merchandises which is 57 % is the old clients and another 12 % is the new clients.
3. Most of consumers loyal to Danone Dumex ‘s merchandises because they know the ingredients and contents in the instant milk that will assist for sufficient food and turning to their babes.
4. 93 % of the clients are from the female ‘s clients.
5. Most of the clients said that they afford to purchase and pass their money to purchase the low-cost monetary value of Danone Dumex ‘s merchandises.
[ 1 ] Retrieved from hypertext transfer protocol: //www.dumex.com.my/about_us
[ 2 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 3 ] Supporting papers 2 – Giant Spotted in Shah Alam Company Unveils Huge Logo as Part of Rebranding Exercise
[ 4 ] Supporting papers 1 – Danone Dumex Products Sport a New Look
[ 5 ] Supporting papers 3 – Players in Turning Up Milk Formula Market Face Stiff Competition
[ 6 ] Product life rhythm shows the different phases that a merchandise passes through and the gross revenues that can be expected at each phase.
[ 7 ] Supporting papers 2 – Giant Spotted in Shah Alam Company Unveils Huge Logo as Part of Rebranding Exercise
[ 8 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 9 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 10 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 11 ] Supporting papers 3 – Players in Turning Up Milk Formula Market Face Stiff Competition
[ 12 ] Supporting papers 3 – Players in Turning Up Milk Formula Market Face Stiff Competition
[ 13 ] Supporting papers 5 – Survey: Awareness of the Malayan Towards Danone Dumex ‘s merchandises Particularly Its New-Look Merchandises
[ 14 ] Is a concern which makes determinations which tend to be followed by other concerns in the market.
[ 15 ] Supporting papers 3 – Players in Turning Up Milk Formula Market Face Stiff Competition
[ 16 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 17 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 18 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 19 ] Supporting document 1- Danone Dumex Products Sport a New Look
[ 20 ] Supporting papers 5 – Survey: Awareness of the
