Dairy Industry Trends and Challenges

The assignment delves into the dynamic landscape of the global dairy industry. It examines emerging megatrends in agriculture and food production, particularly focusing on Australia-Indonesia relations within this sector. The analysis considers factors influencing consumer behavior towards dairy products, including pricing strategies and health concerns. Furthermore, it explores the economic impacts of climate change on dairy production, innovation co-production initiatives, and the growth of animal product consumption in key markets like China and India.

Running head: DAIRY INDUSTRY, AUSTRALIA
Food Marketing
[Dairy Industry, Australia]
Name of the student:
Name of the university:
Author note:

1DAIRY INDUSTRY, AUSTRALIA
Executive summary
The paper has researched few most important marketing strategies that have successfully guided
to the exporting of cheese in the Asian region. The paper has shown that Australia is a potential
exporter of dairy products, which comes at the third position in terms of exporting the dairy
products in the entire world. The paper has shown the entire essential points or strategies, which
are important to conduct the marketing of a product. Moreover, this is a complete guide to the
entire basis rule for marketing the products to a new market.

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Table of Contents
Introduction......................................................................................................................................3
Background of industry and product...............................................................................................3
Consumer behaviour and market segmentation...............................................................................4
Integrated marketing mix.................................................................................................................6
Branding strategy.............................................................................................................................7
Marketing activities interrupting routine behaviour at point of sale...............................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Dairy industry is one of the most profitable industries in the world. The reputation goes
same with Australia as well. The country is a small producer of milk; however, it is the world’s
third largest countries in terms of exporting dairy products (Friel, Barosh and Lawrence 2014).
Asian countries such as China and India are the nations that have growing demands for dairy
products (Trostle and Seeley 2013). Due to some challenges at the home such as the climatic
condition, it is facing stiff competition in the matured market. This is because of such reason it
was important to head for a different market. In this context, the Asian region comes alive. Asian
countries are growing with demands for the dairy products rapidly. The growing challenges for
the Australian dairy industry are coincided with the growing opportunity for the same in the
Asian region (Klerkx and Nettle 2013). This is because of such fact it was felt necessary to
promote the products in the Asian region. The product selected for the Asian region is Cheese.
There are already few local market leaders in the different recons of Asia. However, the
potentiality of the demands for the milk products might serve the purpose. The main purpose of
this assignment is to prepare a marketing plan for Cheese produced in the dairy industry in
Australia.
Background of industry and product
The dairy industry in Australia is well supported by utmost technologies that even
compensate for the losses that happen in the country because of unsupported climatic condition.
Water is very important for the dairy industry; however, the country is facing severe challenge in
having the sufficient quantity of water. Additionally policies are also uncertain. Despite the
challenges, Australia is the third largest countries in the world in exporting the dairy products.

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However, it is way behind to two potential markets New Zealand and EU. The major exporting
destinations for Australia are Singapore, Japan, China, Malaysia and Indonesia (Hanslow et al.
2014).
Cheese is a major contributor in the Australian dairy industry. The exports are worth over
$715 million. However, the production is now getting hampered because of poor availability of
milk in the country. The production is getting decreased. This is because of the fact the country
has to rely on imported cheese as well. Approximately 25% of the exporting cheese is imported
from other countries such as New Zealand, Europe and the US (Butler et al. 2015).
Consumer behaviour and market segmentation
The consumption of dairy products is expected to grow in Asia even faster than the
mature markets like the US and the Western Europe. This is because of the changing diets of the
people living in the region. China is at the forefront in the consumption of milk and the dairy
products. This is because the younger population of the country is potentially moving with the
healthy diet products (Fuller and Beghin 2015). On a same note, India is also emerging as a
potential country for the dairy products. It is largest producer of milk in the world. The younger
generation is growing with their keen interest for dairy products. The growing awareness in the
younger generation for health has supported the trend to happen in the different part of the Asian
region (Fu et al. 2012).
Based on product type, the segmentation of the cheese product in India can be segmented
as Cheddar (Hard cheese), Mozzarella Cheese and Cottage cheese. Based on type, cheese can be
segmented in as processed cheese and unprocessed cheese. Based on the uses, Cheese can be
segmented into Parmesan cheese chips, cheese waffles, fried cheese balls, cheese curds and

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cheese straws (Masliukivska 2015). Customers in the Asian countries are getting exposed to
processed cheese such as the one used in Pizza and Burgers. India in particular is witnessing a
double digit growth in the consumption of cheese. Segmentation in the Asian region will be
done based on the demographic and the behavioural factors (Reardon and Timmer 2014).
Demographic will be chosen because the trend for healthy diet is growing in popularity in the
Asian countries. Younger generation in specific have increased temptation for the cheese and
related products. Apart from the younger generation, elder members in family do also prefer
cheese or the related products, so as to provide nutritional foods to their kids. Customers in the
Asian region are very concerned with their health, which is why they view cheese and the related
products as a safe supplement for protein. The economic status of the Asian region is also
supporting that fact as China, Singapore and India are the few countries that are emerging
nations in economy. People living in such countries have increased purchasing capability with
them. Nevertheless, the changing trend for the nutritional products and an increased purchasing
capability are the two potential aspects that might help the exporting of cheese from Australia a
success (Samal and Pattanaik 2014).
Behaviourally, lot have been changed in the Asian countries. They like pizza, burger and
much like such products they have never done before. The increasing demands for such foods
have produced utmost opportunities in the Asian countries. Apart from some fast foods, they also
consume in one of its nutritional forms such as Paneer. The change in behaviour is because of the
increased purchasing capability of the Asian people and the influencing effect of the Western
countries. The effect is getting transferred with the help of different media and also with the help
of numerous people moving to such countries (Kumar and Babu 2014).

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Integrated marketing mix
Product- Ample of varieties of cheese will be used as there are ample of such products that are
already popular. Some of the products type will be Rubing, Rushan, Paneer, Chhena, Dahi
Chhena, Khoya etc. These are few of the products listing; however, there can be some more
products. Products have been decided based on the popularity in its respective regions. China is
emerging as the potential market for cheese with India as another frontrunner. This is for such
reasons potential market will be targeted initially such as China, India, Malaysia, Singapore and
Japan. Some more products will also be included based on the local people’s preferences.
Moreover, the idea behind the concept is to enter the Asian market with the products that are
already there in the market. Basically, cheese only will be exported from Australia. However, the
export will be done keeping in mind the requirement of different types of cheese products
popular in the different Asian region. However, the cheese exported to such countries will have
to face stiff competition from some local companies. This is very important to plan the entry
strategically, so that, minimal challenges are faced (Ingavale 2012).
Price- Pricing will also be done according to the standard market pricing in the respective
region. However, cheaper rates will be offered against the different cheese products at the start of
the entry. The prices for the products will be increased a bit higher when there will be demand
for the exported cheese in the Asian market. On a similar note, prices will be reduced when the
demand is low (Eyles et al. 2012).
Promotion- This is very necessary as this will help to enter into the market. Advertisement will
work well for the purpose. There are ample types of advertisements that exist today. For this
purpose, advertisement on TV during the daily soaps will be a better idea. This will help in grab
the attention of mass audience. Additionally, social media platforms will also be used. Social

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media platforms such as Facebook, Twitter and LinkedIn will be used. In addition to this, daily
newspapers will also be used to advertise the cheese exported from Australia. This will help in
grab the attention of clients such as the dealers (Allender and Richards 2012).
Branding strategy
Figure 1: Branding Strategy
(Source: Seo and Jang 2013)
Branding strategy is a good way to grab the attention of a significant customer base. This is
generally represented in an image form with some words to describe the imagination. This can be
through various ways such as it can be published in some popular magazines to pass across the
views of thousands of people those who read magazines. It can also be displayed through big
hoardings on the road. This has probably become a trend across the globe. There are cities that

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have roads full of hoardings such as the New York street. In the given case, the brand strategy
behind the cheese will be very much like the one pasted above. The business is related with the
exporting of cheese from Australia. Fast foods are very famous in the Asian countries such as in
China and India. The above pasted image is showing the cheese attached to a fast food. This
simply signifies the message that the proposed business needs to convey to the Asian countries.
This will also indicate the freshness, which will be a part of the business as people living in few
Asian countries such as in China and India are very prone to fresh foods (Seo and Jang 2013).
Marketing activities interrupting routine behaviour at point of sale
There are several marketing activities that interrupt the buying behaviour of customers at
the point of sale. The cheese exported to the Asian parts will be made available to various malls,
retailing showrooms, grocery shops and market. All the four places have different types of
customers coming to the point. Additionally, there will be differences in the management of the
point of sale of the different shopping locations that are mentioned above. For example, in malls
the display will follow the standard form of product’s display such as the merchandise display.
It means that different kinds of products will be displayed in an attractive way, so that; customers
get attracted towards the product and will end up buying the product. Retailing showrooms will
have more or less the same display as showrooms also have such customers that are attracted
towards the good display. Grocery stores and market probably have the different set up as such
places have customers mostly belonging to the middle class families. In the irrespective of the
shopping places, there will be a frequent visit of the agents to check whether products are
appropriately displays especially in the malls and the showrooms. Managers in such places are
also needed to check the arrangements, so that, the instructed strategy is followed on daily basis.
In the grocery stores and in market, this will be checked that whether products have been kept

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with full protection from the bacterial fungus. Such products would be instructed to keep in
refrigerators in such places. This will keep the cheese fresh and servable to the customers
(Green, Whitten and Inman 2012).
Conclusion
The case study taken for the marketing of cheese from Australia in the Asian nations has
revealed various facts and made to understand several things such as market segmenting,
branding strategy and many others like the same. The study has helped to conclude that the
concept might be a success in the Asian countries. Few nations in the Asian region are the
emerging potential for the dairy products. Such nations include but are not limited to such as
China and India. They have been the potential markets because of few factors such as the
growing economy of the concerned nations and the changing socio-cultural aspects of the same.
The growing economy has enabled a mass customer in such place to bear the purchasing of
cheese and the related products. The socio-cultural facts are encouraging the varied groups of
people to purchase the different dairy products. This is because of the growing concerns for the
nutritional products. The various local government circulars and the different publishing articles
in the website have both collectively educated the common people over heath related benefits.
This is for all such reasons the Asian countries have become the potential market for dairy
products specifically for cheese.

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References
Allender, W.J. and Richards, T.J., 2012. Brand loyalty and price promotion strategies: an
empirical analysis. Journal of Retailing, 88(3), pp.323-342.
Butler, J.R.A., Slamet, A., Meharg, S., McEachern, S., Neilson, J. and Hajkowicz, S., 2015.
Australia-Indonesia Centre Megatrends: Agriculture and Food. Report prepared for the
Australia-Indonesia Centre, Monash University.
Eyles, H., Mhurchu, C.N., Nghiem, N. and Blakely, T., 2012. Food pricing strategies, population
diets, and non-communicable disease: a systematic review of simulation studies. PLoS
medicine, 9(12), p.e1001353.
Friel, S., Barosh, L.J. and Lawrence, M., 2014. Towards healthy and sustainable food
consumption: an Australian case study. Public health nutrition, 17(5), pp.1156-1166.
Fu, W., Gandhi, V.P., Cao, L., Liu, H. and Zhou, Z., 2012. Rising consumption of animal
products in China and India: national and global implications. China & World Economy, 20(3),
pp.88-106.
Fuller, F.H. and Beghin, J.C., 2015. China’s growing market for dairy products. Iowa Ag
Review, 10(3), p.5.
Green, K.W., Whitten, D. and Inman, R.A., 2012. Aligning marketing strategies throughout the
supply chain to enhance performance. Industrial Marketing Management, 41(6), pp.1008-1018.

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Hanslow, K., Gunasekera, D., Cullen, B. and Newth, D., 2014. Economic impacts of climate
change on the Australian dairy sector. Australian Journal of Agricultural and Resource
Economics, 58(1), pp.60-77.
Ingavale, D., 2012. A study of international trade of Indian Dairy Industry. Management, 1(12).
Klerkx, L. and Nettle, R., 2013. Achievements and challenges of innovation co-production
support initiatives in the Australian and Dutch dairy sectors: a comparative study. Food
Policy, 40, pp.74-89.
Kumar, A.A. and Babu, S., 2014. Factors influencing consumer buying behavior with special
reference to dairy products in Pondicherry state. J. Res. Manage. Technol, 65, pp.65-73.
Masliukivska, A., 2015. DESCRIPTION OF UKRAINE’S MILK PROCESSING INDUSTRY
AND SEGMENTATION OF CONSUMERS OF DAIRY MARKET. Modern Science Moderní
věda, p.32.
Reardon, T. and Timmer, C.P., 2014. Five inter-linked transformations in the Asian agrifood
economy: Food security implications. Global Food Security, 3(2), pp.108-117.
Samal, L. and Pattanaik, A.K., 2014. Dairy Production in India-Existing Scenario and Future
Prospects. International Journal of Livestock Research, 4(2), pp.105-113.
Seo, S. and Jang, S.S., 2013. The roles of brand equity and branding strategy: a study of
restaurant food crises. International Journal of Hospitality Management, 34, pp.192-201.
Trostle, R. and Seeley, R., 2013. Developing countries dominate world demand for agricultural
products. Amber Waves, p.5.

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