Andec Case Analysis
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)
•
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)
•