Andec Case Analysis

Topics: Milk, Marketing, Grocery store Pages: 3 (384 words) Published: September 9, 2012
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.


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


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



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.


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


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.


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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