中国牛奶市场分析

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region of China.
SWOT Analysis
• Strengths: Trusted American dairy product that carries multiple health benefits and the backing of the Chinese government
• Demand likely to grow due to increase of disposable income, higher awareness of health benefits and increased availability of refrigeration.
Gov’t Backing
• Hood is one of America’s largest and most trusted dairy operators having 15 manufacturing plants in the US
• Hood is looking to expand their markets even more… interested in introducing Hood to the Chinese market
FACILITIES
• Head quarters located in Beijing • Processing and packaging facilities
located a mile away from the dairy farms • Various structures such as milking parlor, maternity pens, straw store, feed store, milk room, manure pit, an office, barns, sheds, and machinery
• Founded in 1846 in Charlestown, Massachusetts by Harvey Perley Hood
• Hood is a dairy company that has expanded its New England roots and is now distributing all over the country
Packaging
• Cardboard Milk cartons • Plastic Milk bottles
Current milk Sales in China
*These 4 companies are our largest competitors in China
Pricing Strategies
• The government plans to support standardized farming of cows and encourage mergers to develop the dairy industry in a modern manner
HOOD coming to CHINA
Why China?
• The dangers milk has present when produced in China… health / food safety violations by Chinese companies
• Chinese lack of trust in the quality and safety of their milk
• Large population, large market, large demand • Raised concerns about the food safety and political
corruption • Large market, large demand • Milk scandal is fresh on Chinese consumers minds...
• Abundant amount of land outside of major cities and in Eastern China
• With our 300 purebred dairy cows imported, Hood will have 3 running dairy farms in the North Eastern regions of China
• World average consumption of dairy is 270 grams a day and the Asia average is 140 grams, China is averaging 42 grams leaving potential for exponential growth.
GOT MILK?
We have HOOD and China needs it
Edward Batten, Gretchen Remien, Harry Walker, Kobe Lee, Yanyuan Xu, Betty, WangCai
Trusted Brand
• For over 160 years Hood has been a name associated with fresh, quality dairy products that taste great.
• Similar scandal 4 years before, watered down milk resulted in 13 infant deaths from malnutrition, and 16 infants with kidney stones from the powdered milk
• Very difficult to begin doing work in China without government backing and approval
• Xinhuanet posted an article talking about Chinese Premier Li Keqiang vows to boost dairy industry
Market Overview Cont.
• Milk accounts for 60% of dairy consumption in China
• New industry standard recently mandated that only pasteurized milk can use the word “fresh milk” on the label
Supplies
• Average American dairy farm has 115 mature cows
• A mature cow can produce 7 gallons a day which is nearly 2,500 gallons a year
• Roughly 500 sq ft. of land required per animal
Why Milk?
• In 2008 there was a major milk scandal, involved milk and infant formula adulterated with melamine resulting in 300,000 sick children, 6 of which died due to malnutrition
Good time to introduce a new trusted Western milk competitor into the market, more specifically an American company.
Data Analysis
• 100 surveys were handed out to students at Qingdao University, locals at various super markets, and online surveys to the general public
• Beneficial to the Chinese population’s health, strong bones, adding some components that had been missing from their diets… protein, calcium, and other nutrients your body requires to operate properly
200 Purebred Hood Dairy Cows will be transported from America to China across seas on cargo ships to then be delivered to our 3 farm locations in the North Eastern
• Looking to improve the quality of the dairy industry and regain consumer confidence after the 2008 scandal
Gov’t Backing Cont.
• The National Development and Reform Commission is expected to allocate 1 billion yuan (162 million U.S. dollars) this year for the development of new milk sources, according to the Dairy Association of China
Penetration Pricing: ▪offer a low initial price to get it out into the mass market right away ▪ lowers per unit production costs ▪marketing costs per unit are greatly diminished ▪A low initial price discourages competitors from entering the market ▪*Firm may want to maintain initial price to gain profit lost from low introductory level. OR lower the price further, counting on the new volume to generate the necessary profit.
Market Overview
• Dairy consumption in China reached 19 million tons in 2011
• Expected to surpass 25 million by 2014
• This growth would place China’s market size ahead of EuropΒιβλιοθήκη Baiduan dairy markets such as France and Germany
• From the surveys we have gathered… that the majority of china’s population drinks milk They are unsatisfied with the quality of the milk in China They are open to new superior milk brands entering the market They are very concerned who where there milk comes from and who produces it.
• Weaknesses: Lack of knowledge of health benefits
• Opportunities: A massive and expanding market and an increase in disposable income from consumer to
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