Marketing Strategy for Westland Milk Products in the UK

Running head: INDIVIDUAL ASSIGNMENT
International marketing
Name of the student
Name of the university
Author Note:

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Table of Contents
Executive Summary.........................................................................................................................4
Product Policy Decisions.................................................................................................................5
Part i-Product (Communication Extension):...............................................................................5
Part ii-Product Extension (Communication Adaption):..............................................................6
Product iii-Product Adaption (Communication Extension):.......................................................7
Product iv-Product (Communication Adaption):.........................................................................8
Most appropriate strategy:...........................................................................................................8
Part v-Product (Invention):..........................................................................................................9
Channel Decisions...........................................................................................................................9
Specialized Trade Importers........................................................................................................9
Manufacturing Importers...........................................................................................................10
Retail Importers.........................................................................................................................10
Wholesalers................................................................................................................................10
Importers....................................................................................................................................10
Channels decisions appropriate to Westland:............................................................................11
Pricing Issues and Decisions.........................................................................................................11
Currency Fluctuations................................................................................................................11
Inflationary Environment...........................................................................................................12

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Government Controls.................................................................................................................12
Competitive Behavior................................................................................................................12
Promotional Challenges and Issues...............................................................................................12
Inflationary environment:..........................................................................................................14
Potential of Communication..........................................................................................................16
Communication mode................................................................................................................16
References......................................................................................................................................19
Appendices....................................................................................................................................23
Appendix 1.................................................................................................................................23
Appendix 2.................................................................................................................................24
Appendix 3.................................................................................................................................25
Appendix 4:...................................................................................................................................26
Figure 4.Diagram showing freight calculation..........................................................................26

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Executive Summary
The following report has been prepared to deduce the marketing strategy of a dairy organization
in New Zealand. The formulator of the report has considered Westland Milk Products as the
company and has assessed the different marketing strategies that are undertaken by the
management of the organization to ensure the success of the organization and also lead the
company to a large scale status from its present status of a medium scale industry. The
mentioned company is also known as the Westland Cooperative dairy products limited and is an
independent company that owned by 429 farmers who are basically the shareholders of the
organization(westland.com, 2018). Headquartered in Hokitika, New Zealand the company has
slowly risen up the ranks from a small scale enterprise to a medium scale enterprise through its
unique and successful marketing strategies. According to the annual reports of the company, it
has annual revenue of around NZD $600 million with employee strength of 500 people. Though
it is a medium sized enterprise, it shares the status of the third largest dairy company of New
Zealand. The company has a large range of products that includes the likes of Skim Milk
Powder, Whole Milk Powder, Buttermilk Powder, Butter, Anhydrous Milk Fat and many more
such different milk products.
The prediction of a faster growth in the sector and the robust domestic dairy industry is
the key market characteristics of the industry. The increase in the number of exports have been
one of the best changes in the recent years and the management of the organization have utilized
the opportunity to full extent to export the products to countries like UK. However the
management of the company has targeted UK as the target market both for exporting as well as
expanding the market.

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Product Policy Decisions
An effective communication strategy is extremely important for business companies in
order to create to position their products appropriately in the market. As far as Westland Co-
operative Dairy Company Limited is concerned, the company has presence in New Zealand, its
home country while China forms its only offshore market. It can be pointed that both New
Zealand and China are extremely competitive dairy market with both resident and international
competitors (Bai & Chang, 2015). For example, Nestle, the largest dairy company already has
strong presence in both New Zealand and China, thus competing with Westland Cooperative in
both its home and only existing host country respectively (nestle.co.nz, 2018). Again, on the
home front, Westland faces competition from the largest resident dairy company, Fonterra. This
discussion clearly shows the Westland needs to combine a formidable communication strategy
with its product policy decision:
Part i-Product (Communication Extension):
Kundu and Majumdar (2017), business organizations require to extend their present
communication strategy to the international markets as a part of their product strategies. This
enables them to create awareness about their products in the new markets. This communication
creates awareness about the company and its products among the different stakeholders like
government, suppliers and consumers in the new host market. The early entrants in the
international market always opt for this particular strategy. The management of Westland,
though one of the largest firms in New Zealand is actually a medium sized enterprise with
limited manpower and other resources. Thus in order to extend its operations into the United
Kingdom, Westland need to extend its communication channels into the country and promote its

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products. It being a premium dairy products manufacturer and marketer should promote its
products in visual and digital media(Koeman & Bialkowski, 2015).The company should promote
its products, its profitability and its capability of causing profit to the suppliers. The
communication strategy of Westland Cooperative in the United Kingdom should adverstise its
products in the business magazines and websites. It should promote its entry into the British
market in its official websites. This would help the company to attract suppliers in the UK which
would provide it with high quality raw materials and enable it to manufacture products adapted
to the local tastes. The communication strategy should consists also communicate to the
customers in the United Kingdom that Westland would be adjusting its products to match to the
British tastes. Thus, the communication strategy of Westland should be an extension of its
central communication strategy and aim to create all-round business opportunities for the firm in
the market of the United Kingdom(westland.com, 2018). A proper and uniform product policy
along with that of a uniform communications strategy is utmost essential for the business to
produce the economies of scale.
Part ii-Product Extension (Communication Adaption):
Notta and Vlachvei (2015) mention that the product extension strategy of Westland
should be a part of core product strategy adapted to adapt to market conditions of the United
Kingdom. The extended product line should have influences of the characteristic high quality
dairy products which form the unique selling proposition of the Westland. The company should
retain its core high quality and add new characteristics like fresh cream and English style dairy
products. In most of the cases the organizations seem to offer the same kind of products to the
customers that are already present in the market and offers similar kind characteristics. This kind
of marketing strategy is taken up by the firms generally in cases of different cultures and a