Question 1 / 5: What are the general Problems A2 Milk Co. is facing? (do not discuss competitors here)
One of the key problems that A2 Milk Company faces is reduced growth based on diminished sales. The business has been making limited sales since the pandemic occurred. The COVID-19 pandemic has posed a significant challenge for the firm’s growth primarily due to the extended lockdown directives experiences in different global markets. For example, New Zealand has experienced extended lockdowns to curtail the spread of the virus (Wilson, 2020). This means increased exposure to reduced sales and revenue because the company is making minimal sales. The closure of borders leaves the firm unable to move its products in large numbers to various global destinations. This affects its profitability, mainly because the firm remains committed to advancing its brand and supply chain processes amidst the pandemic. Despite the pandemic causing havoc, the business has strengthened its core processes. However, the lockdown restrictions leave it less likely to obtain the desired financial milestones. Therefore, diminished sales and revenue remain core issues that the milk company is facing due to the pandemic. The other primary challenge revolves around the unfavorable market conditions experienced in China and other central markets. For example, there has been a significant backdrop of large-scale growth of imported milk in China (Xu, Yang & Wu, 2020). This portrays that an organization such as A2 Milk Company will encounter minimal sales in such a market. Also, the company has been exposed to a reduced user base, considering that its milk products contain lactose and protein. Most consumers are less reluctant to consume its products based on the presence of these components. They shift to the vegan diet lifestyle to avoid being exposed to acne and other conditions associated with the consumption of dairy products (Alghamdi, Alhemel & Bukhari, 2017). The fact that these products are not favorable and appropriate for persons with lactose intolerance and milk allergy means that the company risks losing a significant number of consumers.
Question 2 / 5: Who are the competitors of A2 Milk Co.?
The milk production industry is highly competitive. A2 Milk Company is currently facing stiff competition from primary dealers whose tactics advance their brand status. One of the main competitors is Westland Milk Products, based in New Zealand. It is known to produce high-quality dairy products which meet and advance consumer expectations. The company has gained international recognition due to its range of excellent products. Another major competitor is Lion, based in Australia and is engaged in producing dairy products. Some of the products it sells include milk, cheese, and yogurt. Notably, Bega Cheese is another firm that threatens A2 Milk Company’s growth and productivity. It engages in the manufacture of infant formula and other milk-related items (Bega Cheese, 2022). Lastly, Nestle is a crucial competitor with its chain of infant formula products. These are the prominent brands that give A2 Company a run for its money. Its growth status is dependent on how well its leaders can develop and implement competitive strategies. For example, with the change in consumer behavior and consumption patterns, the firm can tap into existing potential and stand out among its competitors. (Bentivoglio et al., 2020) believes that change in consumer behavior and interests in eating healthy are some of the primary aspects which have led to a decline in milk consumption. This shows that a firm that produces milk products that do not align with consumer needs risks failing to achieve the projected growth outcomes. A2 Milk Company has been linked to manufacturing products containing allergic components. It can stand out among its competitors if it can adjust this perspective and provide customers with products containing zero lactose and proteins. Also, price-based strategies can allow the brand to become competitive (Vigneron, 2022). The secret behind developing a competitive advantage is selecting tactics that ensure the brand is on top of the game.
Question 3 /5: Who are the current customers of A2 Milk Co.? What could their future customers be?
A2 Milk Company serves individuals targeting at achieving advanced health and lifestyle outcomes with their portfolio of products. The primary consumer market for the firm’s milk products are individuals committed and enthusiastic about their health and lifestyle. These are people known to experience digestive issues. A2 Milk Company produces products containing the A2 protein component, which is safe and convenient for their health (A2 Milk Company, 2022). The firm’s branded milk is naturally occurring. It has not passed through any genetic engineering or technological products. Most consumers with health-related challenges such as allergy and lactose intolerance target the firm’s products because they are safe and healthy for consumption. Also, children are a central market segment that consumes its products. The brand ensures that it produces quality and healthy products that fall within the targeted range of benefits expected with infant-based items. For example, the infant formula that A2 Company is easily digestible. This makes it an excellent product for young ones to avoid constipation. The brand serves vital consumer markets such as Australia, New Zealand, China, the USA, and Canada (A2 Milk Company). It has continued to gain optimal consumer support due to the quality range of dairy products that the company produces. These market consumers have supported the firm’s dream by purchasing and consuming its products. The brand has expanded its operations into these markets to meet these consumers’ needs, interests, and expectations. Overall, A2 Milk Company serves numerous global consumer markets that have continued to accelerate its growth and productivity. The organizational milestones evidenced from these markets highlight its power to obtain even further advanced outcomes and venture into other potential consumer markets.
Question 4 / 5: What could be the next products A2 Milk Co. could offer in the USA?
The company offers a range of milk-related products in the US market. It provides whole, reduced-fat, fat-free, and half and half milk products (A2 Milk Company, 2022). All these are items that fall under the milk category. This means that the business has not ventured into other major dairy products. There is a significant market potential that the brand should tap. One of the next products the company should provide to the US market is cheese. This is one of the largely demanded products in the contemporary setting. For instance, low-fat cheese has been in high demand today based on its health-related benefits (Mohamed, 2015). If the brand can produce low-fat cheese products and offer them in the US market, it can meet and advance consumer expectations. The other product that the company should consider offering is branded infant formula. With parents experiencing numerous hitches such as lack or reduced breast milk, the formula can help substantiate their needs. They can use it to offer their children the expected nutrients when faced with a breast milk shortage. Lastly, the business should aim at the yogurt product and allow the US market to enjoy a wide range of associated varieties. Ensuring that the company can produce a variety of flavors will accelerate consumer satisfaction. These are some of the products that A2 Milk Company should consider availing in the US market. They will supplement the milk products that the business offers to the consumers. This will allow the business to advance its brand status and image in this market. Overall, its success and sustainability rely on how well it can meet consumer expectations and satisfaction. Introducing numerous dairy products can pave the way for these milestones.
Question 5 / 5: What would you do to market a new product from A2 Milk Co.?
Marketing a new product offered by A2 Milk Company can follow identified processes to ensure that the brand achieves the set goals and objectives. After identifying an opportunity, a marketing strategy is essential because it guides the actualization process (Vigneron, 2022). One of the valuable steps is to organize pre-launch giveaways. This is a valuable tactic that can allow the brand to have potential consumers spread the word to their peers, family members, and significant others. For example, if consumers taste the yogurt and find that it exceeds their expectations, they are more likely to share information with people around them. The next viable strategy to consider is increasing visibility. Sharing the product on numerous platforms such as social media can ensure that information about the product reaches out to numerous persons. For example, posting the product on Facebook and Instagram can attract numerous interested persons seeking to try it. A vital aspect that should be cultivated in this area is creating shareable content. The brand should ensure users can share the information posted on their timelines. This helps spread the word to numerous people and allows the business to attract numerous consumers. Lastly, the company can use influencers to market and promote the new product. Considering that A2 is an already known brand in the market, using influencers can further accelerate its presence in the public domain. Its leaders can target a crucial influencer and promote its dairy product. This will help tap consumer attention, learn more about the product, and develop positive purchase intentions. A marketing plan is the critical success factor behind availing of a new product in the market (Vigneron, 2022). A2 Milking Company can achieve the projected outcomes with a well-established marketing plan.
A2 Milk Company (2022). Premium branded ASX and NZX-listed dairy nutritional company. Thea2milkcompany.com. Retrieved 27 June 2022, from https://thea2milkcompany.com/.
Alghamdi, H., Alhemel, A. M., & Bukhari, I. A. (2017). Effect of milk and dairy products consumption on acne risk and severity in young adult patients with Acne vulgaris attending the dermatology clinics at King Fahd hospital of the university in Alkhobar, Saudi Arabia. ScienceRise. Medical science, (4), 4-8.
Bega Cheese Company (2022). Home – Bega Cheese. Bega Cheese. Retrieved 27 June 2022, from https://www.begacheese.com.au/.
Mohamed, A. G. (2015). Low-fat Cheese: A modern demand. International Journal of Dairy Science, 10(6), 249-265.
Vigneron, F. (2022). Small Business Consulting PowerPoints
Wilson, S. (2020). Pandemic Leadership: Lessons from New Zealand’s approach to COVID-19. Leadership, 16(3), 279-293. https://doi.org/10.1177/1742715020929151
Xu, L., Yang, X., & Wu, L. (2020). Consumers’ Willingness to Pay for Imported Milk: Based on Shanghai, China. International Journal of Environmental Research and Public Health, 17(1), 244.
Question 1 / 5: What are the general Problems A2 Milk Co. is facing? (do not discuss competitors here)