Report on Marketing Strategy Analysis: A2 Milk Company in Australia

This report provides a comprehensive analysis of the marketing strategy employed by the A2 Milk Company in the Australian milk market. It begins with an introduction to A2 milk and the company's mission, followed by a strategic analysis of the company's operations. The analysis covers segmentation strategies, examining how A2 Milk Company targets its customer base. It also explores consumer changes and how the company responds to shifts in consumer behavior. The report delves into competitive responses, evaluating how A2 Milk Company navigates the competitive landscape. The prioritization of limited resources is also discussed. A marketing mix analysis is conducted, assessing the company's product, pricing, place, and promotion strategies. Finally, the report offers recommendations for the A2 Milk Company, aiming to enhance its future performance in the Australian milk industry. The report also includes references and a bibliography.

Running head: MARKETING STRATEGY ANALYSIS
MARKETING STRATEGY ANALYSIS
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY ANALYSIS
Table of Contents
Introduction....................................................................................................................2
Strategic analysis of a2 Milk Company in Australian milk market...............................2
Segmentation of a2 Milk Company...........................................................................2
Consumer changes of the organization......................................................................4
Competitive responses to the organization................................................................5
Prioritisation of the limited resources........................................................................6
Marketing mix analysis of a2 Milk Company................................................................6
Recommendations provided to a2 Milk Company.........................................................7
Conclusion......................................................................................................................8
References......................................................................................................................9
Bibliography...................................................................................................................9

2MARKETING STRATEGY ANALYSIS
Introduction
A2 milk mainly refers to the variety of cow’s milk which lacks in the form of Beta-
casien proteins termed as A1. The milk mainly contains A2 form of protein and has been
introduced in the market by a2 Milk Company in different counties like Australia, New
Zealand, the United Kingdom, the United States and China (Esty and Fisher 2019). The a2
Milk Company has also claimed that milk that contains A1 proteins are harmful for health of
people. “A2 milk” has thereby become a trademark of a2 Milk Company in various countries
along with the US. The major purpose that has been developed by the organization is to
enrich lives with the help of nutritional wonders that are a part of nature (Esty and Fisher
2019).
The report will be based on the strategic analysis of A2 Milk Company and its
operations in the Australian Milk Market. Different aspects related to strategic analysis that
will be taken into consideration in the report include segmentation, consumer change,
competitive responses and the prioritisation of the limited resources. Marketing mix of a2
Milk Company will also be analysed in the report for the purpose of providing
recommendations based on its future operations in Australian Milk Industry.
Strategic analysis of a2 Milk Company in Australian milk market
Segmentation of a2 Milk Company
The growth of marketing strategy of The A2 Milk Company Limited is mainly based
on the proper identification of segmentation based on the ways by which buying behaviour of
customers can be analysed. By the proper implementation of segmentation technique A2
Milk Company Limited will be able narrow the diversified and large target audience into
some narrowly defined and specific groups as well (Esty and Fisher 2019). The Blue Ocean
Strategy can be implemented by the A2 Milk Company in order to develop customer

3MARKETING STRATEGY ANALYSIS
segments that will be targeted by the organization. The company will develop demand for the
Milk products that are based on A2 milk protein by providing knowledge to the customers
about the benefits. Proper knowledge related to benefits offered by the products can influence
the needs and demands of the consumers in various countries. The benefits that are offered by
the products will also be able to attract new customers towards the organization. The
differences in backgrounds of the customers have an impact on their demand for the A2 Milk
product. The consumers A2 Milk Company belong to the age groups between 15 years to 50
years (Esty and Fisher 2019). People who are interested in healthy lifestyles are considered to
be a major part of the customer group of A2 Milk Company. The formations of segments of
customers who have similar types of needs and demands have influenced the organization in
a positive manner. The various customers are targeted by the A2 Milk Company in order to
maintain proper position of the firm in dairy industry of Australia.
The segmentation process that has been implemented by The A2 Milk
Company with the help of proper combination of all the above mentioned strategies has been
helpful for the company to attract customers and to maintain its position in the industry as
well. The development of proper segments is considered to be an important part of the ways
by which an organization like the A2 Milk Company can maintain its customer base (Esty
and Fisher 2019).
Consumer changes of the organization
The proper development of marketing mix strategies is mainly related to knowledge
that The A2 Milk Company Limited about the customer base. The consumer changes based
issue that is being faced by The A2 Milk Company is related to lack of A1 protein in the milk
products of the organization. The lack of knowledge of consumers related to benefits offered
by A2 Milk and absence of clinical results is the major issue related to consumer change

4MARKETING STRATEGY ANALYSIS
(Esty and Fisher 2019). The steps that are followed by The A2 Milk Company Limited in
order to analyse the customers are as follows,
 The first step that can be implemented by The A2 Milk Company Limited is
related to the ways by which potential customers and current customers can be
identified. The characteristics, traits and motivation levels of customers are
taken into consideration for the purpose of recognizing them.
 Second step of customer analysis is based on information that is offered about
the demands and needs and their expectations as well (Esty and Fisher 2019).
 Third step of the process is based on analysis of the ways by which products
or services can be offered in order to fulfil different needs of the customer
groups. The A2 Milk Company can also develop different customer profiles or
personas in this case based on their needs and demands (Esty and Fisher
2019).
The four major principles that are related to the development of proper customer
analysis methods mainly include the following,
 All the customers differ.
 All the customers change.
 All the competitors react.
 All the resources are limited (Esty and Fisher 2019).
The first two principles can be taken into consideration by The A2 Milk Company in
order to understand the customers and their behaviour in a detailed manner. First principle
states that “All customers differ” and “All customers change”. The two principles are able to
suggest that the changes in behaviour and needs of customers are quite common. The

5MARKETING STRATEGY ANALYSIS
organization thereby needs to consider the ways by which the changes in consumer behaviour
can be taken into consideration in order to develop the products (Esty and Fisher 2019).
Competitive responses to the organization
The sale or production of the dairy products are based on three stages that include
dairy farming, milk processing and retail distribution. The dairy industries of Australia and
New Zealand are considered to be quite similar leaving some of the major expectations.
Production process of the dairy market had started in 5800 farms in which more than 1
million cows that produces 9 billion litres of milk (Esty and Fisher 2019). Large farms are
able to generate more revenues in comparison to the smaller ones as they receive high returns
from the dairy processors. The products are sent to the customers after the completion of
production and packaging process is completed (Esty and Fisher 2019).
The A2 Milk Company Limited has started its operations in the industry with the help
of proper development of focus on the intellectual property. In second phase the company has
continued the operations with the help of its own products. The increase in levels of
competition in dairy industry has led to the usage of technology and proper marketing in
order to enhance research and development. The A2 Milk Company has developed a
partnership with Fonterra in the year 2018 in order to improve the research and development
process (Esty and Fisher 2019). On the other hand, Nestle has started providing major levels
of competition to The A2 Milk Company with the help of similar dairy products that are
offered to the customers.
The competition levels in dairy industry has started increasing in the last few years
after the entry of a major multinational organization like Nestle. The reactions that are
provided to competitors based on the third principle of “All the competitors react” of The A2
Milk Company has however communicated with the customers based on effectiveness of A2

6MARKETING STRATEGY ANALYSIS
milk protein in order to maintain its competitive advantage in a sustainable manner.
However, Nestle that is a primary competitor of The A2 Milk Company provides A1 protein
based milk (Esty and Fisher 2019).
Prioritisation of the limited resources
The limitation of resources that can be used by The A2 Milk Company is mainly
based on the fourth principle that is “All the resources are limited”. Almost 80% of total
products developed by The A2 Milk Company are sold in Australia and New Zealand. The
usage of resources by the organization is also related to the research and development based
activities that are performed by The A2 Milk Company (Esty and Fisher 2019). The strategic
relationships that have been developed by the A2 Milk Company with Fonterra Group has
been able to provide major resources to the organization. Proper usage of the resources is able
to play a major role in the ways by which The A2 Milk Company can improve the growth
levels in the dairy industry (Esty and Fisher 2019).
Marketing mix analysis of a2 Milk Company
Products – The products that are offered by The A2 Milk Company are considered to
be quite unique in nature in order to develop its position in the dairy industry. The A2 milk
protein is able to play a major role in development of the unique products of the company
(Esty and Fisher 2019).
Pricing – The proper evaluation of value that is offered by the products of The A2
Milk Company is able to play a major role in development of pricing strategy. The price
penetration strategy has been implemented by The A2 Milk Company in order to develop
lower prices in comparison to the competitors. The firm will also be successful in gaining a
larger share in the market with the help of low prices. Price wars faced by the company have
been able to influence the revenue levels in a huge manner. Skimming strategy on the other

7MARKETING STRATEGY ANALYSIS
hand is implemented with help of clear levels of communication based on proper levels of
differentiation (Esty and Fisher 2019).
Place – Distribution channels that have been used by The A2 Milk Company are
related to the ways by which different customer segments are targeted in order to serve their
needs. The brick-and-mortar based distribution strategy is used by the organization along
with the online distribution related strategy. The importance that is provided by the modern
customers to easy availability and convenience is able to influence the pricing policies of the
A2 Milk Company (Esty and Fisher 2019).
Promotion – The promotional strategies that are developed by the A2 Milk Company
are considered to be most important for development of proper promotional activities in order
to accomplish the marketing based objectives. The major promotional strategies that have
been implemented by The A2 Milk Company include direct selling and high profile based
advertising as well. The information related to target market is considered to be an important
part of the development process of promotional strategies that are implemented by the A2
Milk Company Limited (Esty and Fisher 2019).
Recommendations provided to a2 Milk Company
The major recommendations that can be provided to The A2 Milk Company for its
future operations are as follows,
 The promotional strategy of The A2 Milk Company can be improved in order
to reach the customers faster. The A2 Milk Company can improve the
promotional strategy by proper usage of the various digital channels like social
media and e-mail marketing in order to reach the customers faster.
 The sustainable differentiation has been developed by The A2 Milk Company
with the help of the unique A2 milk protein based products that are provided

8MARKETING STRATEGY ANALYSIS
to the customers. The A2 Milk Company needs to increase awareness related
to the benefits that are provided by the products by enhancing communication
with customers.
 The company needs to improve the online operations in order to develop a
larger customer base and offering them with their required products in the
convenience of their homes. The delivery process needs to be developed in
order to offer the products to customers within stipulated amount of time.
 The research and development activities of The A2 Milk Company needs to be
improved so that it is able to become more competitive in the modern business
environment. Research and development will also be able to play a major role
in the proper improvement of products that are offered by the organization as a
part of its product portfolio.
Conclusion
The report can be concluded by stating that the A2 Milk Company Limited has been
successful in development of a sustainable competitive advantage in the dairy industry.
However, the competition that is faced by the firm is considered to be a major factor that has
an impact on the ways by which the A2 Milk Company is able to maintain its position and
revenues as well. The marketing mix that has been developed by the firm is considered to be
an important factor that is able to support the future operations and profitability of the
organization in dairy industry of Australia.

9MARKETING STRATEGY ANALYSIS
References
Esty, B. and Fisher, D., 2019. The a2 Milk Company. HBS Strategy Case, (719-424).