International Marketing Plan: Anchor Dairy's Expansion in Asian Market

This report provides a comprehensive international marketing plan for Anchor Dairy as it seeks to introduce a new dairy product line, Anchor buttermilk, into the Indian market. The report begins with a company analysis, highlighting Anchor's history and global presence. It recommends a joint venture strategy with a domestic Indian organization, specifically Amul, to facilitate market entry, leveraging Amul's brand reputation and resources. The report includes an implementation plan outlining key activities, timelines, and responsible managers. Furthermore, it details marketing mix recommendations, focusing on product quality, cost-effective pricing, strategic placement through Amul's supply chain, and impactful promotional strategies. The conclusion emphasizes the importance of the strategic alliance with Amul for successful growth in the Indian dairy market.

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Contents
Introduction......................................................................................................................................1
Company Analysis...........................................................................................................................1
International Market Entry Strategy................................................................................................1
Recommendation for Future Development.....................................................................................2
Implementation Plan....................................................................................................................2
Recommendation.........................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
The purpose of this report is to enlighten the reader about the introduction of new dairy product
line for the Anchor Company. The company is aiming to introduce Anchor buttermilk product in
the target market. Further, below mentioned is the market entry recommendation for the new
product along with future development opportunities as well. More details about the report are
discussed below:
Company Analysis
The company Anchor was originated in the year 1886 in New Zealand as a source of pure
goodness. Anchor has currently covered 130 years in providing good old dairy product in the
market. Further, the company is present in 80 nations worldwide and serve more 160 products as
well. The organization works with an aim to provide pure and rich quality dairy products in the
market and strive to champion human potential for the growth of the company. The company
offers various products like butter and spreads, fresh milk, yoghurt and dairy, powders etc. and
the company has various brand working under them naming Zero Lacto, Protein+, Uno and
CalciYum. Along with this, Anchor also provides nutritional help through its blog (Anchor,
2019).
International Market Entry Strategy
The company should make use of Joint Venture strategy in the market to grow and promote the
product in the Indian target market. Strategic joint venture business strategy refers to the
business strategy that initiates a business agreement between two companies to work together
and achieve specific goals in the target market. Under this case, the company Anchor should tie
up with another domestic organization of India based in any industry to initiate its business
actions in Indian dairy market. Strategic joint venture does not need to be permanent as it offers
the advantage to the companies to maintain their independence and identity as individual
companies while working together in the same market (Yan, & Luo, 2016). Under this type of
scheme, the foreign organization gains the advantage to capture the international market using
the brand reputation of the domestic company present in the target market. The companies get to

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share the resources, strengths and weaknesses of each other while working in the target market.
In this type of scheme, the organizations get to form a strategic alliance based on legal agreement
and then shut it down according to the requirement present the market (Stienstra, & Martin,
2017).
The company Anchor should form alliance with domestic organization Amul, the company is
also a part of dairy industry in India and is known for providing quality products in the market.
Further, this type of joint venture will help the organization to successful grow using the brand
name of Amul in the Indian dairy market (Amul, 2019). Forming a strategic alliance with Amul
will help the organization to make use of strengths of the company and grow using their
resources as well. Amul will help Anchor to place themselves at a position where the company
want. The company is going to introduce its newly produced buttermilk in the Indian market so
they need to make sure that they target the right type of customers in the market otherwise
Anchor will fail. So, use of strategic alliance as the market expansion strategy in India will help
Anchor to target the appropriate segment present in the market.
Further, Amul (Anand Milk Union Limited) is an organization that is based in Gujarat and was
originated in the year 1948. The company has also initiated India’s White Revolution that made
the organization world’s largest producer of milk and milk products. Thus, it should be noted as
both the organizations are highly efficient in their respective countries due to which alliance of
these two organizations will bring prosperity for both of them (Amul, 2019).
Recommendation for Future Development
Implementation Plan
Activity Time Period
(in months)
Manager Growth
Objective
Concerned
Department
Situational
Analysis
2 Marketing Head Collection of
authentic
information
R&D
Creation of new
product for market
1 Operations Head Initiating goals
and mission
Operations

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expansion
opportunities
Defining audience
and prioritizing
groups present in
India
3 Marketing Head Deciding target
groups and people
Marketing
Allocating
Resources to meet
Indian client’s
expectations
4 R & D Head Procuring
Resources
R & D
Product
Development
Strategies
2 Operations Head Analysing issues
and comparing
with the real
world situation
Operations
Forming Strategic
Alliance
3 PR Manager Attracting
sponsors
Public
Relations
Development of
channels
1 Sales Head Development of
platform to make
more effective
sales
Sales
Initiation of Sales
through different
channels
12 Manager Implementing
sales campaign
Management
Recommendation
The below mentioned is marketing mix recommendation for the product buttermilk of Anchor to
grow and succeed in Indian market:
Product: Considering the marketing product strategy the company Anchor should invest on
providing purified products in the target market. As the organization is involved in dairy
products that requires intensive protection while formation of the product (Buckley, & Casson,

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2016). So, the company should focus on increasing the quality of product by providing fresh and
healthy butter milk to customers present in the market. The company should not add
preservatives in the product so as to maintain its natural taste for the customers. Buttermilk
should be introduced in the market with different flavours and varieties as well. This will added
wholesomeness and good taste in the product (Kwok, Sharma, Gaur, & Ueno, 2018).
Price: The Company should make use of cost effective pricing strategy in order to succeed in the
target market. As India comes under the list of developing countries that reflects that most people
of the country belongs to middle-income class. Resulting to which, if Anchor will initiate cost
effective pricing strategy for buttermilk in the market then they will successfully capture the
Indian market as well. Economic prices of the product will motivate the people to purchase
buttermilk. Furthermore, the company should also provide differential pricing to different
products in order to specify premium quality product and differentiate it in the market (Anjum,
Satyanarayana, Sharma, & Srinivas, 2017).
Place: As it is known that, the company targets the nations present in the Asians region. So
Anchor should form strategic alliance in different Asian regions in order place their position in
the market. Along with this, Anchor should effectively make use of supply chain management
system of Amul in order to reach to different segments of Indian dairy market. In this way, the
company will efficiently reach in the home of every Indian customer (Shortt, & O'Brien, 2016).
Promotion: In India, companies grow using effective promotion strategies only. So, it is
important for Anchor company to promote the buttermilk using eye catchy taglines and
advertisements as well. The company should supply buttermilk in three types of packaging, first
packet should be small for one time consumption while the second one should be medium size
packet for 4 people consumption and third packet should be family pack. These three types of
varieties will help the company to reach to a wider customer base present in the market. The
company should also make use of Amul’s promotion techniques and brand name to create
goodwill in the Indian market (Bazhan, et. al., 2018).

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Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the report
evaluated the marketing entry strategies for Anchor to introduce its buttermilk product in the
target market. Implementation plan along with recommendations are also provided to the
company to grow and succeed in the Indian market. The company should form alliance with
Amul India to inaugurate its growth in Indian dairy market.

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References
Amul., (2019). About Us- The Amul Model. Retrieved from < https://amul.com/m/about-us>
Amul., (2019). Integrated Management System Policy. Retrieved from <
https://amul.com/m/integrated-management-system-policy>
Anchor., (2019). Our Story. Retrieved from < https://www.anchordairy.com/nz/en/about-
us.html>
Anjum, N., Satyanarayana, C. H., Sharma, G. R. K., & Srinivas, D. (2017). Organic Dairy
Farming Prospects and Limitations-An Awareness Study. Indian Research Journal of
Extension Education, 31-35.
Bazhan, M., Kalantari, N., Keshavarz-Mohammadi, N., Eini-Zinab, H., & Hosseini, H. (2018).
Exploring the Facilitating Factors Affecting Functional Dairy Products' Consumption
from the View Point of Stakeholders: A Study Based on Social Marketing
Theory. Iranian Journal of Nutrition Sciences & Food Technology, 13(3), 27-38.
Buckley, P. J., & Casson, M. (2016). International Joint Venture Strategy. International
Business: Economics and Anthropology, Theory and Method, 106.
Kwok, F., Sharma, P., Gaur, S., & Ueno, A. (2018). Interactive effects of information exchange,
relationship capital and environmental uncertainty on international joint venture (IJV)
performance: An emerging markets perspective. International Business Review, 27.
Shortt, C., & O'Brien, J. (Eds.). (2016). Handbook of functional dairy products. CRC Press.
Stienstra, M., & Martin, X. (2017). When collaborative strategy turns into acquisition:
Distinguishing and explaining partner acquisition versus joint venture buyout.
In Collaborative Strategy. Edward Elgar Publishing.
Yan, A., & Luo, Y. (2016). International Joint Ventures: Theory and Practice: Theory and
Practice. UK: Routledge.