Andec Case Analysis

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Company Background:

Andec was the first high-calcium full cream milk for kids in the Philippines but was pulled off the market after two years of unsuccessful market penetration.

Issue:

What marketing plans could Mr. Gonzales suggest to the senior management to bring back Andec?

Recommendation:

In order to bring back Andec, Mr. Gonzales should suggest the following (ranked based on importance?/priority?):

4P’s:

Product:

Andec – A high calcium milk formula with vanilla flavor. It had more calcium and other important vitamins than normal full cream milk powders. It has two variants – for children 4 to 8 years old and for those 9 years old and above. It is not suitable for infants but the formulation is safe for 1-3 year olds.

Price:

It had a 15 percent price premium over its leading competitors because of its high calcium content.

Promotion:

The company had preliminary testing, where they sponsored several taste test across the country plus the television advertisements and promotional activities during the product launch.

Place:

There are 5,500 retail customers strategically located nationwide (supermarkets, grocery stores, and corner grocers).

Targeting – The target market are growing-up individuals aged 4 to 19 who are included in the middle to upper income class.

Positioning – Andec is the brand of full cream milk which provides growing-up children aged 4 and above strong and sturdy bones because of its high calcium content.

Five forces:

1. Power of Buyers:

2. Power of Suppliers:

• 84 percent of the country’s milk requirements came from Australia, New Zealand, Netherlands and US.

3. Threats of New entrants:

4. Threats of Substitution:

• Products with high calcium content.

Potential Strategies:

• Intensify promotion of the product having high calcium content.

• Use the manufacturer’s name to build the brand’s image (vs rivals)

•...
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