Case Study “Milk C”

Consumers tend to consume soy milk instead of fruit juice and tea because soy milk gives more benefits.

HIGH RELATIVE MARKET SHARE LOWLOW

MA

RK

ET G

RO

WTH

RA

TE Y

2

Y3

HIG

H

22,478

2,271

0

BCG Matrix (Beverage Market without Soft drink)Market Value (Million Baht)

1

TEA

FRUIT JUICE

YOGURT

0%

19.16%

40% SOY MILK

UHT MILKSTERILISE MILK

TFD PASTEURIZIED MILK

PASTEURIZIED MILK

TFD UHT MILK

0.5

6,991

6,096

5,530

3,5164,457

1,944

964

174

2,270

1,751

1,167973

1,8431,613

1,152

2,134

2,743

1,219

0

500

1,000

1,500

2,000

2,500

3,000

CVSS/H OT

70%

38%

16%

5%

18%

6%

Modern Trade is a key driver for soy milk market.It is also the main distribution channel for our target group.

ประมาณ250 สาขา

ประมาณ 8,000 สาขา

Sales (Million Baht)

Y1 Y2 Y3 Y1 Y2 Y3 Y1 Y2 Y3

Market Value(MB)

Year

434

622

208

326

165

223

104 75

0

100

200

300

400

500

600

700

Market Situation: Milk C sales drops significantly

while the overall market value rises continuously.

75

(MB)

(Year/Month)

Milk A

Milk B

Milk C

Milk A is the strong market leader and the aggressive first mover.

250mL. 200mL. 200mL.

10฿ 10฿ 12฿regular low fat zero fat

Develop new product ideas

79%

100%

100%

0% 20% 40% 60% 80% 100%

OT

CVS

S/H

Current Numeric Distribution

Modern trade is the main distribution channel

0

20

40

60

80

100

120

140

CVS

OT

S/H

Buy 2 Get 1

10% Price Cut

Reinforcing the brand

Stealing competitor's sales (Milk C)

NPD: low fat NPD: zero fat

(MB)

(Year/Month)

Milk

A R

eg. S

ales

Milk B is the challenger who uses price differentiation strategy.

250mL. 220mL.9฿ 10฿

regular low fat

Product line extensionsTarget customer: Price Sensitive

90%

90%

98%

0% 20% 40% 60% 80% 100%

OT

CVS

S/H

Current Numeric Distribution

Focus on all distribution channels

0

10

20

30

40

50

60

70

80

90

CVS

OT

S/H

10% Price CutBoosting sales

Boosting sales

NPD: low fat

Cannibalization

10% Price Cut

(MB)

(Year/Month)

Milk

B R

eg. S

ales

Product line extensionsTarget customer: Price Sensitive

Current Numeric Distribution

0

5

10

15

20

CVSOTS/H

(MB)

250mL.

10฿regular low fat

220mL.

Barrier to competitor (Milk A) 10% Price Cut

(Year/Month)

Milk B is the challenger who uses price differentiation strategy.

Milk

B L

ow

Fat

Sal

es

9฿ 90%

90%

98%

0% 20% 40% 60% 80% 100%

OT

CVS

S/H

Focus on all distribution channels

NPD: low fat

Milk C is the Follower whose positioning and distribution channel are quite similar to Milk A.

250mL.

10฿regular

37%

30%

50%

0% 20% 40% 60% 80% 100%

OT

CVS

S/H

Current Numeric Distribution

0

10

20

30

40

50

60

CVS

OT

S/H10% Price Cut Creating interest

Buy 2 Get 1 Inventory Clearance

(MB)

(Year/Month)

Milk

C R

eg. S

ales

Milk CSituation Analysis

Milk C sales drop by the decrease of distribution channels.

104 104 105 10593

82 79 84 84 8297 99

80 7867 71 68 63 64 64 67 70 73 75

0

50

100

150

48 48 48 4844 44 44 44 41 41 41 41 41 41 41 41 41 39 39 39 39 39 39 39

0

20

40

60

Y1M1 Y1M2 Y1M3 Y1M4 Y1M5 Y1M6 Y1M7 Y1M8 Y1M9 Y1M10 Y1M11 Y1M12 Y2M1 Y2M2 Y2M3 Y2M4 Y2M5 Y2M6 Y2M7 Y2M8 Y2M9 Y2M10 Y2M11 Y2M12

(MB)

(%)

Milk C Sales (Thailand)

Milk C Brand Numeric Distribution (Thailand)

a decrease in distribution channels

a steady in sales

(Year/Month)

NPD from Milk A & Milk B gain distribution channels from brand C which didn’t generate sales as much as the competitors.

(MB)

NPD + TVC is a way to remind the brand which increase sales forall product types of Milk A and Milk B

(MB)

Sales

Distribution

Brand Reminding

Milk C : Situation Analysis

Competitor’s

NPD

Competitor’s

TVCCompetitor’s

NPD

Milk C Problem

Recruit new customers

Remain old customers

Suggestion

STEP 1

STEP 2

- Strengthen brand reminding by TVC Ads

- Finding new opportunity

- Launch NPD

250mL.

regular