Strategic Analysis and Marketing Recommendations for A2 Milk Company

This report provides a comprehensive strategic analysis of the A2 Milk Company, focusing on its marketing activities within the Australian milk market. It explores the company's unique selling proposition, which centers on A2 protein milk, and examines its target customers, competitive landscape, and marketing strategies. The analysis covers the company's partnerships, particularly with Fonterra, and its expansion into the Chinese market. The report also discusses the competitive responses from companies like Nestle and Mengniu, highlighting the impact on A2 Milk's market position. Furthermore, it offers recommendations for A2 Milk Company, including upstream supply management, relationship marketing, and the use of social media. The report also emphasizes the importance of pricing strategies, sustainable competitive advantage, and the utilization of both traditional and modern marketing channels to achieve its marketing objectives and maintain a strong brand image. Finally, the report concludes with a summary of the company's key strategies and its potential for future growth.

Running head: MARKETING
Marketing
Name of the student
Name of the University
Author note

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Introduction
Marketing is indicative of the activities that are carried out by a company for buying
or the selling of product or a service. It comprises of the advertising along with the delivering
of the products to the customers or the other business. Marketing helps in managing the
exchange relationships that helps in providing satisfaction to the customers. A2 Milk is the
fastest growing milk brand within the Australian supermarket (Thea2milkcompany.com
2019). It refers to a premium milk brand that can be found in all the major supermarkets of
Australia. This report strategically analyses the company in terms of the Australian milk
market. The report also talks about the recommended measures that can prove to be useful for
the company.
Strategic analysis of a2 Milk Company
A2 milk provides the nutritional products for the infants and the children that caters to
the growing needs. The branded milk of the cow can be said to be different from that of the
conventional cow’s milk as the cows are selected that can help in producing only A2 protein
type. The milk of the cow occurs in the natural way and it is not the product of any kind of
genetic engineering or the technological process. The company determines the customers on
the basis of their age along with the income. The company offers the products on the
premium prices so it focuses on the middle and the high income group of the population
(Nystrom and Winston 2016). The innovative product of the company is the infant formula
that helps in targeting the babies along with the new mothers. The secondary customers of the
company are the females who make use of the product for the purpose of making various
kinds of dishes. It offers discounted prices during the festive times that helps in targeting the
people of the lower income group. The company also lays emphasis on the people who have
medical conditions like the heart disease, diabetes along with schizophrenia. The company

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also targets the people who are conscious about their calories and wants to maintain a healthy
lifestyle.
The changes in the buying behaviour of the customers makes the companies change
the strategies of marketing. The technological developments in the recent age has changed the
customer behaviour and social media has helped in targeting the new audiences. In the
beginning of the year 2018, the company was involved more in the marketing as compared to
the process of the production. The company entered into a strategic relationship with Fonterra
that was instrumental in building the credibility of the brand. It helped in building the
business of the company within the framework of the new priority markets (Bodnár et al.
2018). It has helped the company in broadening the manufacturing along with the supply
chain options that has helped the company in attracting the new customers. The partnership
has helped in delighting the customers and generated the value for the farmers.
The competitive responses has helped in building the value of the a2 milk company in
various countries across the world. Nestle began to sell the A1-free infant formula and the
milk that was used for making the formula was sourced in the global market. The company
has engaged itself in sourcing, processing along with the marketing f that of A1 protein free
diary along with the nutritional products within the global markets. This principle contrasts
with that of the new entrants who have to consider how to carry out the communication in
relation to the benefits of the A1 protein free variant (Kenny 2016). The entry of Nestle has
helped in growing A2 dairy market. The entry of Nestle was facilitated with the help of
expiration of that of a2 milk company’s patent on the testing of milk in the year 2015. The
creation of the alternative genetic tests for that of the cows helped in facilitating the entry of
Nestle. In the year 2018, China’s Mengniu which is the tenth largest processor in the world
started selling that of A1-free drinking milk within China. Happy Valley Milk which is the
name of a dairy processor in Australia that was instrumental in building NZ $ 230 million

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factory that can help in making the infant formula. The network of a2company has continued
growing and the other companies like Nestle have launched the A2 products that has helped
in making the customers aware about the benefits of a2 milk (Mucchetti and Zambrini 2017).
It has helped in providing advantages to that of a2 milk brand as it has been able to get the
first mover advantage. The brand image of Nestle can have a positive effect on a2 milk that
can be instrumental in spreading its influence in the wider market. The company has also
developed a distribution network with the help of their e-commerce platforms that has helped
in providing benefits to the company.
A2 milk has involved itself in prioritising the limited resources that have helped the
company in getting a competitive edge within the market. The milk that is manufactured by
the company contains the beta-casein protein that can prove to be advantageous for the health
of the consumers (Potočnik 2015). The milk of A2 is marketed as a healthy choice when
compared to the regular milk. The drinking of the regular milk is instrumental in creating
discomfort for the customers that jeopardizes the health of the people. There are people who
cannot digest the lactose and these group of people can benefit greatly with the help of the a2
milk. There has been heightened awareness in relation to the plastic packaging and this has
made the company switch from the bottles to the cartons. The value-added milk has drawn
the attention of the customers and it has helped in providing the consumers with the
alternatives to that of the standard cow’s milk. The consumers in the present time have
become concerned about the packaging sustainability along with the effect on the
environment. The development of the new policy in relation to the new carton has helped in
responding to the expectation of the customers for the recyclable packaging.
Strategies for A2 milk company

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There are certain strategies that can be made use of by a2 milk that can help in its
consolidation within the market. A2 milk can take recourse to upstream supply management
that can help in the maintenance of the quality of the diary products. There should be rigorous
quality control pertaining to the products of the diary company that can be instrumental in
improving the quality of milk in the company. The training programs should be implemented
in the company that can work for the benefit of the company. It can help in improving the
quality of products of the company. A2 milk can seek the tactical improvements that can help
in improving flow of the materials and boost the equipment of the company (Dzhabarova and
Peneva 2017). Relationship marketing can be said to be a facet of that of customer
relationship management that lays emphasis on the aspect of the customer loyalty. It helps in
engaging the customers in the long term that helps in increasing the sales of a company
(Zhang et al. 2016). It helps in retaining the customers that can increase the profitability of a
company within the market.
A2 milk has built the brand awareness and strengthened the market position within
China since the year 2013. The E-commerce platforms helps the Chinese consumers in
buying the products of the company. The Chinese consumers can buy the branded fresh milk
of that of a2 by taking recourse to the premium supermarkets and with the help of the online
platform. The Chinese people have the poor milk tolerance and the a2 company can indulge
itself in marketing that can help the people of China in deriving the physiological benefits.
The company can also harness the usage of the social media that can help the company in
building the credibility for that of the Chinese market (Kotler et al. 2015). A2 can take
recourse to the three channels: online platforms, mother and the baby stores along with the
informal buyers that can help in the marketing of the company. The company can take the
advantage of the Chinese e-commerce platforms that can help the Chinese consumers in
buying the products of the Western brands. The company can also open the informal shops in

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Australia on behalf of that of the people in China that can help in the marketing of the
company. Customer lifecycle helps in describing progression of the steps that a customer
goes through at the time of buying a product or a service (Bhaduri and Fogarty 2016). It helps
the customers in growing aware regarding a brand that can help it in creating a position in the
market. It can help the customers in growing aware about the products of a company that can
aid in the process of its marketing.
A2 milk can make the use of the pricing strategy that can help in the creation of a
good impression in front of the customers. The company should choose the price penetration
strategy that can help the company in setting a lower price as compared to the competitors. It
can help the company in winning the market share on the basis of the discounted pricing of
the products of the company. The company can take the help of the skimming strategy that
can help in the area of clear communication of the differentiation pricing of the products of
the company (Kotler et al. 2018). Sustainable competitive advantage can help a company in
thriving in the global environment of the present age. It refers to the assets along with the
attributes of the company that cannot be duplicated that can provide a company with a
competitive position within the market. A2 milk can reduce the prices of the products that can
help the company in creating a superior position within the market (Kerin and Hartley 2015).
It can act as the low cost provider that can help in building the loyalty in front of the
customers. It can be a source of the competitive advantage for the company that can help in
the development of the company in the long run.
A2 milk can take recourse to the traditional marketing channels that can help the
company in attaining the marketing objectives. The company can take the help of the
catalogues, tradeshows along with the direct mail campaigns that can aid in the process of
marketing of the company. The company can take the help of the direct selling along with the
high profile advertising that can help the company in pushing the products in the market. The

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company can develop a prestigious brand image that can help in attracting customers towards
that of the offered product (De Mooij 2018). The company can capitalise on the social media
marketing that can help in the growth of the company. The response model helps in
improving the customer response rate and it treats the people who would react to the
campaigns along with the advertisements. The direct mail campaigns can serve a useful
purpose for the company by reaching out to those people who want to buy the products of the
company. It can help in increasing the profits of the company as it makes a company contact
the likely respondents.
Conclusion
A2 milk is instrumental in providing nutritional products for the children that helps in
satisfying needs of the children. The company has made partnerships with that of Fonterra
that has built credibility of brand. It has helped the business in the area of expansion that has
increased its popularity in the market. The company should indulge in the rigorous quality
control that can improve milk quality in the company. The company can take the advantage
of the training programs that can help in the development of company. A2 milk can adopt the
pricing strategy that can create good impression before customers. The company can make
use of price penetration strategy that can help the company in attracting a large number of
people.

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References
Bhaduri, S.N. and Fogarty, D., 2016. Customer Lifecycle Value—Past, Present, and Future.
In Advanced Business Analytics (pp. 139-156). Springer, Singapore.
Bodnár, Á., Hajzsér, A., Egerszegi, I., Póti, P., Kuchtik, J. and Pajor, F., 2018. A2 milk and
its importance in dairy production and global market. Animal Welfare, Etológia és
Tartástechnológia, 14(1), pp.1-7.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
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Dzhabarova, Y. and Peneva, M., 2017. THE VALUE-ADDED MARKETING–LOCAL
PRODUCTS IN CONFORMITY WITH VITAL RURAL AREAS. Trakia Journal of
Sciences, 15(1), pp.338-342.
Kenny, C., 2016. Health benefits of Lactobacillus helveticus in dairy foods. Journal of
Animal Science, 94, pp.18-18.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2018. Marketing
management: an Asian perspective. Pearson.
Mucchetti, G. and Zambrini, A.V., 2017. Milk Quality and Processing. Advances in Dairy
Products, p.147.
Nystrom, J. and Winston, D.R., 2016. A2 milk marketing and human health. Journal of
Animal Science, 94, pp.18-18.

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Potočnik, K., 2015. Selection adapted to local conditions has the possibility to improve the
economy of small dairy cattle populations. In International symposium on animal
science (pp. 9-11).
Thea2milkcompany.com (2019). Premium branded ASX and NZX-listed dairy nutritional
company. [online] The a2 Milk Company. Available at: https://thea2milkcompany.com/
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marketing. Journal of Marketing, 80(5), pp.53-75.
Reading Material
Case Study: The a2 Milk Company