Section A
Introduction to Clover Dairy
Clover Dairy Ltd. has been around for 114 years, serving everyday South Africans their wholesome dairy products. There is no doubt that to succeed in the South African economy, a business needs to capture and maintain the loyalty and confidence of their target market and with exceptional quality and taste, Clover’s innovation has allowed them to rise above their competitors and dominate the dairy industry. Often it is not only the products that play a crucial role in a company’s success, but rather the management and leadership abilities of the managerial team.
The stakeholders within any company, whether it be the shareholders, potential investors, suppliers, consumers or even the staff members, all contribute …show more content…
The Market Environment
Porters Five Forces Model
CHALLENGE LINK TO PORTER’S FIVE MODEL STRATEGY
COMPETITORS:
• Competitor profile
• Market saturation LEVEL of RIVALRY:
• Identify greatest competitors and leading products/ concepts
• Knowledge of competitive advantage
• Adapt strategies to counteract competitor’s competitive advantage • Conduct market research to adjust to competitors such as Pick ‘n Pay & Checkers
• Investigate new markets such (eg. dairy desserts) to gain competitive advantage
SUBSTITUTE PRODUCTS:
• No Name / Household brands
• Cheaper prices AVAILIBILITY of SUBSTITUTE PRODUCTS:
• Compete with alternative /cheaper products
• Increase variety of products • Identify a cheaper supplier of similar quality standards
• Form strategic alliances (eg, Aquartz, Danone) to increase price and product variety
NEW MARKET ENTRANTS:
• Market Penetration
• Innovative products THREAT of NEW ENTRANTS to the MARKET:
• Find opportunities that increase market …show more content…
Danone, Tropika)
• Encourage loyal consumers (eg. ‘Little Big Cook-off’)
• Improve distribution channels and bridge time gap by building new distribution centres
• De-link shares to increase equity capital and eliminate market barriers.
CONSUMERS:
• Change in profile, purchasing power, shopping patterns POWER of the BUYERS:
• Fickle , not necessarily brand loyal
• Identify and segment target market • Market research to re-identify possible new target markets
• Implement low cost strategy to attract consumers
• Variety of products at competitive prices to increase competitive advantage
• Increase CSR involvement (eg. Mama Afrika) to build business image and gain consumer support
SUPPLIERS:
• BBBEE and Animal Welfare Standards compliant
• Reliability and quality POWER of the SUPPLIERS:
• Right quality, time and price
• Lack of dairy due to disease or past expiry date. • Form and nurture sound business relationships.
• Find reliable suppliers compliant with BBBEE and Animal Welfare Standards
• Negotiate favourable terms and prices to ensure low cost strategy is
Introduction to Clover Dairy
Clover Dairy Ltd. has been around for 114 years, serving everyday South Africans their wholesome dairy products. There is no doubt that to succeed in the South African economy, a business needs to capture and maintain the loyalty and confidence of their target market and with exceptional quality and taste, Clover’s innovation has allowed them to rise above their competitors and dominate the dairy industry. Often it is not only the products that play a crucial role in a company’s success, but rather the management and leadership abilities of the managerial team.
The stakeholders within any company, whether it be the shareholders, potential investors, suppliers, consumers or even the staff members, all contribute …show more content…
The Market Environment
Porters Five Forces Model
CHALLENGE LINK TO PORTER’S FIVE MODEL STRATEGY
COMPETITORS:
• Competitor profile
• Market saturation LEVEL of RIVALRY:
• Identify greatest competitors and leading products/ concepts
• Knowledge of competitive advantage
• Adapt strategies to counteract competitor’s competitive advantage • Conduct market research to adjust to competitors such as Pick ‘n Pay & Checkers
• Investigate new markets such (eg. dairy desserts) to gain competitive advantage
SUBSTITUTE PRODUCTS:
• No Name / Household brands
• Cheaper prices AVAILIBILITY of SUBSTITUTE PRODUCTS:
• Compete with alternative /cheaper products
• Increase variety of products • Identify a cheaper supplier of similar quality standards
• Form strategic alliances (eg, Aquartz, Danone) to increase price and product variety
NEW MARKET ENTRANTS:
• Market Penetration
• Innovative products THREAT of NEW ENTRANTS to the MARKET:
• Find opportunities that increase market …show more content…
Danone, Tropika)
• Encourage loyal consumers (eg. ‘Little Big Cook-off’)
• Improve distribution channels and bridge time gap by building new distribution centres
• De-link shares to increase equity capital and eliminate market barriers.
CONSUMERS:
• Change in profile, purchasing power, shopping patterns POWER of the BUYERS:
• Fickle , not necessarily brand loyal
• Identify and segment target market • Market research to re-identify possible new target markets
• Implement low cost strategy to attract consumers
• Variety of products at competitive prices to increase competitive advantage
• Increase CSR involvement (eg. Mama Afrika) to build business image and gain consumer support
SUPPLIERS:
• BBBEE and Animal Welfare Standards compliant
• Reliability and quality POWER of the SUPPLIERS:
• Right quality, time and price
• Lack of dairy due to disease or past expiry date. • Form and nurture sound business relationships.
• Find reliable suppliers compliant with BBBEE and Animal Welfare Standards
• Negotiate favourable terms and prices to ensure low cost strategy is