Anlec Hi Calcium Milk
Anlec Hi-Calcium Milk
Executive Summary
The case at hand is indicative of what will happen to a brand if the marketer failed to do diligent market segmentation. Clearly, the brand manager of Andec missed the opportunity with a product of such an enormous potential .
He priced his brand 15% higher banking on its high calcium content and its good flavor. He failed to understand that parents decide on what to buy for their children base on what their money can afford, which is why Nido brand is very successful. He look at where to place his brand based only on the scale of the market segment. Obviously in this case, since full cream milk market is the largest segment in the milk industry, this could precipitated the marketer to place Anlec in this segment.
The picture could have been different if Anlec was priced 15% lower than Nido and use its high calcium content and taste as differentiators and as a competitive advantages. Another consideration that should have been taken is the the fact that Nido has been in the market for so long and has already become a household name.
To arrest the declining sales of Andec , to recover the loses of P60M, to regain its composure in the milk industry and to maximize profitability, identification of the appropriate market segment and repositioning of the brand should be done immediately with high accuracy and great precision.
Background Of The Case
Andec, the first high-calcium full cream milk powder with vanilla flavor for kids in the Philippines, with the highest calcium content among all the brands in the growing up milk category was launched in the Philippines in 1998. Campaigns on the need for calcium for prevention of osteoporosis and other calcium deficiency illnesses created a trend of introducing calcium-associated products in the market, such as Anlene and Anmum. The nutritional content of full cream milk shown in Exhibit 3 shows that compared to Nido, which is the leading brand in the full
Executive Summary
The case at hand is indicative of what will happen to a brand if the marketer failed to do diligent market segmentation. Clearly, the brand manager of Andec missed the opportunity with a product of such an enormous potential .
He priced his brand 15% higher banking on its high calcium content and its good flavor. He failed to understand that parents decide on what to buy for their children base on what their money can afford, which is why Nido brand is very successful. He look at where to place his brand based only on the scale of the market segment. Obviously in this case, since full cream milk market is the largest segment in the milk industry, this could precipitated the marketer to place Anlec in this segment.
The picture could have been different if Anlec was priced 15% lower than Nido and use its high calcium content and taste as differentiators and as a competitive advantages. Another consideration that should have been taken is the the fact that Nido has been in the market for so long and has already become a household name.
To arrest the declining sales of Andec , to recover the loses of P60M, to regain its composure in the milk industry and to maximize profitability, identification of the appropriate market segment and repositioning of the brand should be done immediately with high accuracy and great precision.
Background Of The Case
Andec, the first high-calcium full cream milk powder with vanilla flavor for kids in the Philippines, with the highest calcium content among all the brands in the growing up milk category was launched in the Philippines in 1998. Campaigns on the need for calcium for prevention of osteoporosis and other calcium deficiency illnesses created a trend of introducing calcium-associated products in the market, such as Anlene and Anmum. The nutritional content of full cream milk shown in Exhibit 3 shows that compared to Nido, which is the leading brand in the full