Dairy Industry: Trends and Challenges

This assignment explores the global dairy industry by analyzing current trends, challenges, and future prospects. It examines factors influencing demand, production, pricing strategies, and consumer behavior. The report also discusses the impact of climate change, sustainability concerns, and technological innovations on the dairy sector. It delves into specific markets like Australia and China, highlighting their unique characteristics and contributions to the global dairy landscape.

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

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Executive summary
The paper demonstrate a basic guide to the essentials of marketing, which is required in this
study for promoting the Australia made cheese to the different parts in Asia. The paper has
shown the potentiality of Australia in terms of exporting of dairy products. It has also shown
some challenges that the industry is facing in Australia. This is because the paper has focussed
on the different marketing strategies in order to recommend the solution to the Australian dairy
industry. Moreover, the Australian dairy industry can use the mentioned strategies to take the
advantage that are there in Asia.

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Table of Contents
Introduction......................................................................................................................................3
Briefing the industry and product....................................................................................................3
Marker segmentation and consumer behaviour...............................................................................4
Consumer behaviour....................................................................................................................4
Market segmentation...................................................................................................................5
Integrated marketing communication mix.......................................................................................6
Branding strategy.............................................................................................................................7
Marketing activities that interrupt routine behaviour at point of sale.............................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Dairy industry is one of the most profitable options in the world. The reputation goes
same with Australia as well in relation to the exporting of the dairy products. However, it is way
behind to New Zealand, which is the leading exporter of dairy products in the world (Friel,
Barosh and Lawrence 2014). The consumption of dairy products is now more in few emerging
market such as China and India. China in particular has shown a very changed and potential
attitude for the dairy products (Trostle and Seeley 2013). Due to some unexpected external
factors at its home country, the industry is facing stiff challenges in the matured market. Such
fact has produced a necessity to head for a new and potential market. Nevertheless, the Asian
countries serve the purpose for the industry. China in particular is the potential market, which is
also the largest consuming country for the dairy products in New Zealand. The enhancing
challenges at the home country have coincided with the growing opportunity in the Asian
countries (Klerkx and Nettle 2013). An enhanced business relationship with few of the Asian
countries in particular China and India will be a potential move for the reducing effect of dairy
industry in Australia. The product selected for the purpose is Cheese. The Asian countries
already have local giants who are serving the demands of local people for cheese and its related
products. However, a planned entry of the Australian product might also do well for the industry.
The main purpose of this assignment is to produce a solid marketing plan for Cheese that is
produced in Australian dairy industry, so that, it could produce effective results in the target
Asian market.
Briefing the industry and product

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The country is using advanced technologies to compensate the effects of climatic
condition, which is hampering the production of dairy products in Australia. Water is very
important to have an effective production of dairy products; however, the country is facing water
crisis significantly. Additionally, policies are not favourable and have not any distinctive
direction of those. Despite of all such scenarios, Australia is the third largest exporting countries
of dairy products. It is behind only to market leaders New Zealand and EU. The major exporting
destinations for this country include Japan, China, Singapore, Indonesia and Malaysia (Hanslow
et al. 2014).
Cheese is one of few major contributors of the different dairy products. The exports of
Cheese are significantly over $715 million. Despite the fact, the production is getting hampered
due to the reduced production of milk in the country. The production is touching the lower
position on a regular basis. This is for such reasons Australia has to rely on exported cheese as
well. Approximately 25% of the cheeses that are exported are sourced from various international
locations (Butler et al. 2015).
Marker segmentation and consumer behaviour
Consumer behaviour
The consumption of dairy products is expected to scale a new height in the coming times.
It is even expected to surpass the popularity of mass markets such as the US and the Western
Europe. This is because of the many reasons such as the changing culture in the Asian countries
and also because of the increasing awareness in the people of the region for healthy foods. China
in particular is at the forefront in terms of consuming the dairy products. This is the largest
country in terms of dairy trade relationship with New Zealand. The change is majorly because of

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the younger population that have shown their utmost inclination for the healthy foods. Moreover,
parents do also prefer such foods for their kids because of the nutritional value that it has (Fuller
and Beghin 2015). On a similar note, India is another potential destination for the dairy products.
It is the largest producer of milk in the entire world. The country has more or less the same trend
where younger population have shown their utmost interest in healthy foods such as dairy
products (Fu et al. 2012).
Market segmentation
Market segmentation is done based on various factors such as behavioural,
psychographic, demographic and geographic (Reardon and Timmer 2014). The segmentation of
the selected product will be done based on two segmenting strategy such as behavioural and
demographic (Masliukivska 2015). Demographic is chosen because of many reasons such as the
dairy products are for every age group. The younger population living in the Asian region have
shown their growing interest for healthy foods such as dairy products. Additionally, parents have
also become very strict with the daily diets for their kids. They are considering the dairy products
for their different needs. However, they are all supporting a flourishing growth of the
consumption of the dairy products in the Asian region. There are countries that are growing with
the purchasing capability as well. Countries as such China, India, Singapore and Japan have
improved with the growing economy. People living there have now enhanced capability to
purchase expensive products such as the dairy products. This has also supported the growth of
consumption of dairy products in the Asian countries. The cultural values are also adding up
significant changes such as in India where cheese is used in various rituals (Samal and Pattanaik
2014).

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Behaviourally, there have been huge transformations from just a normal eater to a
conscious eater. People living in the country have now developed concerns within them for
healthy foods. They are in search of healthy foods because they have understood that fast foods
are seriously harmful for the health. It contributes in obesity in all age group. The behaviour is
changed also because of the numerous articles that publish on the different websites.
Additionally, people of all age group have become health conscious. Such tendency has
compelled them to react the way, which is identified in this study. The different dairy products
have also become a part of different ceremonial parties. All such and many others have
contributed in the enhance interest for dairy products (Kumar and Babu 2014).
Integrated marketing communication mix
Product- Cheese can be used for different purposes that depend entirely on the regional
demands. Cheese is used in different form in the different parts of Asia. In China, cheese is used
to manufacture Rubing, Rushan and much like that. In a similar way, it is used for manufacturing
Paneer, Chhena, Dahi Chhena, Khoya and many others in India. Products manufacturing will be
done in the respective regions. The main purpose of this assignment is to market and export the
cheese producing in Australia. Therefore, quality cheese will only be exported in order to serve
the different regional purposes that the different regions in Asia have. The target market
initially will be China, India, Singapore and Japan. Locations have been selected based on the
consumption of dairy products in the respective regions. This is also evitable that the exported
cheese from Australia will have to face stiff competition from few localised companies in some
of the targeted regions. However, quality will be tried to maintain as this along with the pricing
will help the business become a success despite the competition from the localised companies
(Ingavale 2012).

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Price- Price will vary according to the different market region in the different parts of Asia.
Pricing will follow the strategy to offer the cheaper prices for the cheese. Additionally, prices
will be elevated in case when there is a demand for the imported cheese. On a similar note, prices
will be reduced when there is a less demand for the products (Eyles et al. 2012).
Promotion- This is a very vital part of the entire marketing strategies needed to promote the
Australian made cheese into the Asian markets. There are ample of marketing communication
strategies; however, for the marketing of cheese, advertisement will be preferred. Advertisement
on the other hand is of different kinds such as advertisement on TV, on popular daily newspapers
or popular magazine. For the given case, advertising the product on TV will be a better idea. This
will be advertised during the popular daily soaps. This will help to grab mass attention in real
time. The different social media platforms such as Facebook, Twitter, LinkedIn and YouTube
will also be used to promote the product. This will also help to grab the attention of a mass
population in particular the younger population. Street hoardings will also be used to advertise
the product on the roads. This will help to catch the attention of every passerby (Allender and
Richards 2012).
Branding strategy

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Figure 1: Branding Strategy
(Source: Seo and Jang 2013)
Branding strategy is a very good way to catch the attention of a mass population in real time. The
image has no text attached to this; however, such hoardings are also used. Such hoardings are a
very common part of the city street in metropolitan cities. Such things are very common in the
different cities across the globe. Such as in the New York street. Such hoardings can also be
pasted in popular magazines. This will help in grab a significant attention of customers. The
above shown image simply conveys the message that freshness and naturalness is the essence of
the products coming from Australia (Seo and Jang 2013).
Marketing activities that interrupt routine behaviour at point of sale

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There are ample of marketing activities that impose interrupting effects at the point of
sale. The cheese imported from Australia will be available to various shopping destinations such
as the malls, retailing showrooms, market and grocery stores. The different kinds of shopping
places that are mentioned have different kinds of customers coming to such places. For example,
premium customers or customers with high purchasing capability visit the malls. In such places,
it is important to follow the merchandise display strategy to attract the customers. The process
will help in arranging and displaying the different products in malls in an attractive way.
Retailing showrooms have more or less the same group of people. An attractive arrangement of
products will also play its worth in such places. Grocery stores and market have only very
slight differences in terms of product arrangement and the type of customers visiting to such
places. People with average income capability in particular visit such place. Irrespective of the
shopping places be, it is important that there is an agent visit to check the arrangement of
products at the malls and the showrooms. There should also be routine checkups from such
agents in the different grocery stores and the market. It is important to check the arrangements
that such places have such as the product’s storing place. Mangers in the showrooms and the
malls are also instructed to maintain routine checkups of the product’s arrangement in such
places (Green, Whitten and Inman 2012).
Conclusion
The case study selected was on preparing the marketing strategies for promoting the
Australian made cheese to the different parts in Asia. The study has helped to understand that the
concept might be a success in Asia. China and India in particular are potential markets. Both the
countries have potentials for the consumption of dairy products because of several reasons such
as the growing concerns for healthy foods, changing socio-economic structure of the few Asian

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nations. The growing economy has enhanced the purchasing capability of mass people living in
such places. Additionally, the desire to have a healthy life has also encouraged the people living
in the different places in Asia to have the various kinds of dairy products. The growing concerns
for the nutritional foods have also encouraged a mass population in particular to go with healthy
foods. Nevertheless, dairy products serve such needs. Additionally, the production of cheese in
Australia needs to be supported with utmost technology, so that, it could enhance the production
despite the challenging circumstances in the home country. Additionally, an improved use of
technology will also help in reduce the adverse effects of the dairy industry on the environment.
Moreover, it is important to support an enhanced production of dairy products in Australia. If
that happens then the mentioned marketing strategy will help in attain the desired goal.

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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),
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Fuller, F.H. and Beghin, J.C., 2015. China’s growing market for dairy products. Iowa Ag
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supply chain to enhance performance. Industrial Marketing Management, 41(6), pp.1008-1018.
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.

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Ingavale, D., 2012. A study of international trade of Indian Dairy Industry. Management, 1(12).
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