The brand we are going to study about is Kuwait Danish dairy company which is one of the leading manufacturers of the dairy products in the Kuwait region. The Kuwait Danish dairy companies’ initial product was milk and they were successful in those products and later their products saw a number of varieties. They have more than hundred products under their product list from milk to sweets.
The KDDC product we are going to discuss is the ice cream raspberry (LoLo) which is been packed in different qualities and also available in various flavors. The organization started the business for milk in a small range but now the Kuwait Danish dairy company is one of the biggest organizations in the region. They are having many employees working in the organization and they handle many dealers and supplying their products regularly to the dealers. They have a wide range of customers for all of their products.The target audience is all the sections of customers but mostly children are main target. Their market is healthy in terms of food products and also there has been heavy competition from various companies local and foreign, buy are nor been getting into the market and giving good competition through their products.
The need that is been satisfied by the product, is that it provided a variety of ice cream for the customers in the region. The ice cream raspberry is a favorite amongst the children in the Kuwait region and also other ages. The product gives the customer the choice to taste the best ice cream in various parlors and restaurants. The climate in the Kuwait region is always hot and the need for good tasty ice cream is always high. This product gives the variety of tastes for the customers and also it’s been available in various packets.The ice cream is been used in most of the food restaurant and college going students. They like to enjoy it after their meals and in the evening times. It tastes good and satisfies the needs of the customer.
Technological changes natural forces
The implementation of the new technology has made the production cost cheaper and this has improved the company’s fortunes. The natural forces also in the region has a very hot climate and it’s good for the company.
New trends that may affect the company and the products is the competition of the foreign products. The younger Kuwaiti generation is very much attracted towards the western culture and those products. Many foreign products are getting in the Kuwait region like Pepsi and through food products. The customers like to have the international brands and they may take a lead when introduced in all places in the market. This may affect the product sales and the company’s revenue over the coming years. The completion for the ice cream is been high from the polar bear companies as they give a different taste and heavy advertisement are also given through the international channels and media. This trend has been created from the foreign companies and they are targeting the youngsters and it may affect the company.
The customers are having the same flavor for a long time and would like to have different tastes. They would also like to try different brands. The cost factor does play a major role and they will be provided different tastes. The customers who generally like LoLo should have the same product in various different forms. For example, the ice cream should be in core and also in the cup. It should also be in various flavors for the customer. The mood of the customer will decide the form he is going to take. Bigger families would like to have a full family pack ice cream in case they went out to a restaurant or spend quality time someplace else with the family. College students, on the other hand, might prefer a cone which can be eaten on the go and would be more convenient in public places.
There are always many alternative choices for the customer while buying these products. The biggest alternative is the availability of the soft drinks from the Pepsi Company. In sometimes people will go for the cool drinks instead of the ice cream. The other criteria is the climate. If the climate is too hot there will be major ice cream sales and also the customers have the habit of eating their ice cream after a meal. It’s a major advantage and it stops them from going to other alternatives even though those competitor products available and providing heavy competition.
Major Market Segments
The major segment that the product competes is the soft drinks segment. The Kuwait Danish dairy company companies also have a soft drink production which is giving major competition. The customer always has alternatives choices, whether to go for the cool drinks or the ice creams is their choice. Customers who are out for a meal would prefer ice cream while sitting back and enjoying their time, whereas customers who are in a hurry would prefer soft drinks. The Pepsi Company is one of the main competitors for the KDDC ice cream products and they are certainly leading the market. The KDDC market is healthy and even with the competition, they are having great success due to the quality or their products and providing what the customer needs.
The products segmentation of the Kuwait Danish dairy company ice cream is mainly targeting children and the younger population. The older people in the Kuwait region are mostly overweighed and have diabetic problems. The main segmentation for the products sales is through the younger generation. School going children will always like to enjoy their ice cream at the end of their school day, so these products have been concentrating highly on parlors located near the schools and colleges. The ice cream product is getting good sales in locations near colleges and canteens because youngsters always love hanging around with the ice creams and soft drinks.
The product positioning strategy is to make their product look unique. The KDDC ice cream also amazing tastes to differentiate themselves from the competition in the market due to high competition from both international and domestic players. The strategy the company’s using is having good local flavor and also providing different products for the customers. They are changing flavors regularly and introducing new products as the customers may get bored of using the same products. They also position themselves as leaders in producing a huge variety of flavors.
Major elements of tangible, extended and generic products
The ice cream products are made in different forms. Ice cream in cones is less tangible than the paper board they use for the ice creams. The cups and the paper boards of the ice creams are very much unique in shape and color and they are very much unique in giving attractive forms for the customer. The ingredients in the ice cream are mostly milk and their derivatives that are used to give good taste. The milk products get processed and ice cream is made. They get the milk directly from their own milk production. Sugar and preservatives are added to the generic products in the ice-cream and the packaging gets done. The raspberry flavor is also extracted from natural sources and is preserved. It is then added to the ice cream to give an amazing taste to the customers.
Packaging and Labeling
The packing process of the ice cream is done in unique style and are also made in various sizes for the requirement of the customers. The packing of the ice creams is done in all sizes from 100 grams to 1 kilogram. The packing is done with the latest technology and through which they can withstand the quality of the items in all cases. The food items should be packed in the specially designed food grade paper which the company uses. The quality and taste of the items are preserved with effective packing methods of the company.
The labeling process is done in a good attractive format and it resembles the stylish symbol of the KDDC products. Different products are given various styles with the flavor printed on the items to inform the customer of what he or she is buying. The labeling process is unique from product to another and makes the customers identify the product easily.
Product life cycle
The product is in the growth stage of the product lifecycle (PLC). After its introduction, LoLo has been gaining some market space and the cost of the production is been scaled down due to mass manufacturing of the product. The volume of the ice cream product sales has also been increasing the market. The customers are now getting to know the taste and flavor of the products and it has being reached to a large number of customer’s in the region. The competition to this flavor is was very low, and very recently competitors have started to introduce a similar flavor in the market. The increase in sales has raised the manufacturing limit and thus the cost of manufacturing has been decreasing with the profit of the product being largely increasing.
Integrated Marketing Communication
The integrated marketing communication objective of the product is to brand the products as one of the best hygienic and nutrition product in the region. They also make it present in the international market. There has been a trust created by the brand name through its different operational methods and has been one of the reputed companies in the region. They have a huge company with many employees and many satisfied dealers. The company wanted to hold their brand name for the hygienic processing of the food products and also make the best-tasting brand in the market.
They wanted to create a good customer base, with their products being a priority to all customers and being the market leader.
The communication process the company has been using is advertising through social media and websites. The company provides ads through the internet and their offers are daily updated through websites. The company provides door delivery to its customers and the order can be taken through phones and online ordering of the company website. The major announcement regarding the changes and special offers are released through the press and social media.They also give their special ads through TV programs and are sponsors of various TV programs. They also have special customer care division for addressing customer issues who order the products using the website and phone calls. Customer issues are handled and given an immediate solution. The customer care sections are well-experienced employees and have been getting good positive results from all sections.
The company has been using attractive phrases to get customer attention. One of the phrases used by the KDDC Company is “Make boring mornings, balmy evenings and after dinner conversations fun by whipping up sweet a bowl of homemade ice creams” and “123 KDD”.The intention of this company phrase is why make the morning boring with the ordinary same food when you can spice it up with the cup of ice cream of the KDCC companies. They also go on saying evenings and after dinner conversation with the friends and the family will be sweeter by adding a cup of ice cream. The people in the Kuwait region have developed the habit of eating ice cream after meals due to climate conditions and also to enjoy a good tasting dessert. The customers are fond of eating in Kuwait and they have really spiced up the food culture with attractive ads.
The sales promotion the company has been choosing is very attractive and the new product promotions are done in order which a consumer can save a lot of money. The company offers the newest products free with the most sold products. Buys two get one free offer are also used to promote new products to reach customers. The product mainly gives offers through their company website for bulk ordering and give free gifts. The products ordering done through their website mentions in the tag line that other offers and promotions are available. New ice creams or flavors are given as free gifts with other products.
The public relationship of the company is very good, and it’s a very good advertisement for the company. The company is a decade old company and there are lots of employees who are given yearly welfare methods. The KDCC main public relationship development was making a contribution to the hospitals in the region. They have also paid for many hospitals to get the basic facilities. They have been contributing highly for the sake of people welfare schemes and with huge donations being made through the charity trust they have built. They provided the basic infrastructure needs of the people in places for the people through which they have developed a good public relationship. This has boosted the image and brand of the company. They also conduct events in the colleges and schools to bring in the good relationship with people through promoting education with their products.
The KDDC Company operated many ice cream retail shops in the region which are popularly known as the Gate shops. In the retail outlets, you can get all the items of the Kuwait Danish dairy company companies’ products. The company has also been supplying the products to various outlets in the region namely Marble Slab Creamery in the avenues, Baskin Robbins ice cream shop and Galaxy ice cream bars.The retail outlets are located in the main centers like the educational institutions which are very busy places. They also offer their ice cream to many major restaurants in the region through which a good supply chain is been created by the company.
. Since customers care a lot about prices with heavy competition around, the company has been using the competition pricing strategy for its product as the market is crowded with domestic and international players. KDDC prices are very similar to other product in the market and when new products are been introduced the price will be much lower the other competitor’s product in the market.
Porter’s competitive strategy gives three policies for the products
The price of the product must be based on the other competitor prices in the market. The pricing variation must not be much higher in case new products are in the market. When the product is being introduced the price has to be one of the attractive factors customers look at. The price must not be one of the factors for the product to stay in the market it must be at par with other companies’ prices.
KDDC must be creative in introducing new products and flavors. Since the food industry always requires some changes in taste and flavor and KDDC has been working very much to offer different taste and flavors to their customers.
The company must be focused on the products they are launching and full attention of requirements of the customers. The modification of taste and size of products has to be done with consideration of customer needs in the market. KDDC is focusing on giving the customer the best products in the market.