2. Phsychology of Market Stages
An emerging market?!
TOMORROW WILL BE TOMORROW WILL BE I DON T CARE ABOUT
LIKE TODAY BETTER! TOMORROW
What does it mean for market drivers and NEW
consumer motivation? What will we expect
to see?
What is the difference between an emerging
and a developed market?
OLD
1. TRADITIONAL 2. EMERGING 3. DEVELOPED
Dairy: It s significance for Mass Market Dairy: It s significance for Mass Market
Consumers Consumers
Dairy is considered the GOLD STANDARD nutritional food for
children in most emerging markets
In China and SE Asia, while the Category Essence was traditionally
not as strong as above, government education has started
positioning Milk/Dairy as above
In most of these markets, there is a strong consumer motivation too
of investing in the child s future and hence ensuring that he/she
gets a Healthy Head Start in life
Hence, the opportunity to leverage above and innovate with Dairy
in Mass Markets in these markets is significant.
The Rules for a successful market entry Five key Market Entry Strategies
1. Remember the Category Significance and Category Essence of Milk Five Market Entry Strategies with varying Innovation quotients & Market
and hence Dairy in the new market. disruption ability:
2. Understand the consumer s changing needs and how that impacts Market Entry Strategy Relevance for Mass Markets
expectations from dairy
Leveraging hidden nutritional assets
3. Then determine the Role of the Brand as well as it s Market Entry
Strategy to create a relevant and competitive dairy marketing mix to New category creation
Not relevant for Mass Market
serve the Mass Market consumer.
New segment creation
4. Innovate and create value by leveraging and fitting into established
habits and category codes Category substitution A supporting strategy!!
In sum The functional foods make-over
Know the Consumer! Listen to Her! Understand her Context!
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3. Leveraging Hidden Nutritional Assets
Dairy in Emerging Markets
LHNA:
Market the intrinsic healthiness that advances in nutritional science
and awareness have uncovered in everyday foods and beverages.
What does it mean for dairy:
Huge relevance for Dairy in Emerging markets... This strategy enhances the
relevance of foods and beverages that consumers are already familiar with by
highlighting the natural goodness within them thereby reassuring emerging
market consumers about their familiar choices.
The success of local dairies/milk co-operatives in many emerging markets
bears testimony to this strategy.
Local dairies have also successfully branded traditional dairy categories by
highlighting the authentic goodness of milk-based categories
Some brands have even tried to promote more foreign dairy categories like
cheese in some emerging markets by leveraging the MILK quotient of cheese.
New Segment in Category
Dairy in Emerging Markets
NSC: To give children the milk with the extra something to help them grow and
Create a new health proposition and a new segment within the develop..
category.
Mengniu is the trusted Chinese dairy .
Bring a new health benefit into an existing category
Future Star Milk fortified with DHA promises to give children the milk with the
extra something to help them grow and develop..
What does it mean for dairy:
Creating new segments within the dairy category has huge potential to
increase the share of throat for dairy in emerging markets
GUMs fortified with DHA with the promise of enhancing mental
sharpness of growing up children has been very successful in many emerging
markets
Flavoured Milk/yogurts to make MILK fun for children
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4. Functional Foods Makeover
Dairy in Emerging Markets
FFMO:
A Me Too strategy where the later players offer the same benefits
as the Early Entrants.
What does it mean for dairy:
In the West therefore the only differentiator in this strategy is Lower Price However
In Emerging Markets, given the huge Mass Market opportunity as well as the Bottom of the
Pyramid opportunity, this Market Entry Strategy can pay rich dividends for Dairy.
Simply ensuring GOLD STANDARD quality and purity of milk at an affordable price can create
significant brand loyalty and hence business value.
The challenge is to create Better Value price is only one factor.
Accessible Milk Goodness in the Consumer s Hands is the key deliverable of this strategy
hence innovations in business models, pack innovations, formulation innovations, innovative
education are all equally critical.
Functional Foods Makeover Role of Brands in Dairy in Emerging
Dairy in Emerging Markets Markets
Emerging markets have traditionally seen more uncertainty that their
European/US counterparts.
Hence, brands are powerful guarantors of reassurance and safety.
Once a brand earns the trust of consumers, it gains the Right to Play in that
category through multiple formats/extensions.
Particularly in dairy which has strong NURTURANCE values in most emerging
markets, brand credentials are a huge asset. Hence, a brand that has
succeeded in setting a STANDARD in DAIRY can then innovate and lead the
consumer to trying new formats and ranges within Dairy.
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5. Brands can take 3 Roles in Dairy in Brands can take 3 Roles in Dairy in
Emerging Markets Emerging Markets
Brand from abroad Glocal Brand
International brand that leverages its Global Credentials particularly in Glocal brand that innovates by adapting it s Global expertise with Local
Science Preferences
The role of such brands will always be somehow limited in the Mass Market
as they tend to earn the trust of the consumer by being the EXPERT BRAND,
which comes at a price premium.
Brands can take 3 Roles in Dairy in To recap: the rules for a successful
Emerging Markets Market Entry in Emerging Markets
National Pride Brand Choose a familiar dairy category
Local brand that builds on it s local heritage and
positions itself as the National Pride
Enhance it s intrinsic Nutritional Quotient further (e.g.
Fortify with micro-nutrients)
Select the right business model
Position it appropriately
Different markets, different challenges Recipe for a successful dairy brand?
Positioning examples
Taste Bone Health
National Pride Gold Standard Quality
All Natural/ Real
Immunity
Healthier/brighter kids,
Milk Goodness
Good for all Family
Brighter future
For Every Occasion Milk rights
Nurturing your Child
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