Case study of Almarai

Running Head: ALMARAI 0
Case study of Almarai
System04122
2/20/2019

Almarai 1
Answer 1: SWOT Analysis of Almarai
Strengths:
 Leader in the dairy market
 High quality of dairy products
 Strong distribution network
 Hot climate conditions goo foe the
beverages market (Helms & Nixon,
2010).
Weakness:
 Operating cost is high
 Dependence on dairy and juice sectors
 Dependent on imports of raw material
Opportunities:
 Growth in the milk market of gulf
corporation
 Diversification in the products
 Increase in number of tourist visits
Threats :
 The political issues of the gulf region
 Increase in cost and problem in supply
chain
Answer 2: Four 4P’s of marketing for Almarai
Product:
It is one of the most important strategies of the company; Almarai has a very successful
product strategy because of the unique infrastructure like the farms and production operations.
The company distributes the products annually (Pasnan & Blankon, 2011).
Pricing:
Almarai prices its product by first taking the account of the cost of distribution and
production and then the final price of the product is decided, the pricing of different products of
the same product range are priced differently.
Place:

Almarai 2
Almarai first transports the milk from the dairy to it is the central processing and then the
finished goods from the production place are sent to the different sales locations. Almarai
reaches 42000 shops daily. The transport system of the company is designed so that the products
are not spoiled (Eric, 2012).
Promotion:
Almarai has very good promotion methods, which helps it to reach the customers
effectively; it reaches its customer through
 Newspaper campaigns: they advertise in various popular papers
 Radio campaigns: this focuses on the promotional and discount factors
 Discounts: discounts are given for promotional basis, which not only increases the profit
but also goodwill among customers
 TV Commercial: this is one of the most common way of promoting products, Almarai
have regular and attractive TV ads on different channels.
 Billboards and holdings: Almarai uses this way of promotion also , it helps the company
to make people aware of the offerings and discounts, also it has this in different
locations where are more people (Baker, 2014).
Answer 3: Porter’s five-force analysis of Almarai
 Threat of new entrants
The new entrants in the dairy industry brings new way of doing things and
innovations, and this thing put a lot of pressure on Almarai for lowering the cost and
pricing strategy for providing new proposition to the customers.
 Bargaining power of suppliers
All the companies in the dairy industry buy their raw materials from various
suppliers. Suppliers in these cases are at a dominant position and this decreases the
margin for Almarai in the market. Most of the powerful suppliers make use of their
negotiating power and try to extract higher prices from the firms in the dairy industry.