Marketing Communication of Dairy Sector Research Proposal

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The supermarkets did not have to deal with refrigeration issues as whole milk came in powder form from foreign firms. However with the appearance of Almarai in 1970s, things changed drastically and fresh cow milk along with laban became very popular products in Saudi Arabia.

For deeper market penetration, effective marketing initiative was required and that came in the form of wide media advertising campaigns along with good packaging designs that changed the perception and moved people to purchase fresh products. The campaigns were so successful that they can be compared to any high profile brand campaign internationally. First of all the word Almarai meant green pastures and this was presented in visually aesthetic form on both advertisements as well as on the package designs. It was very appealing and conveyed the idea of fresh milk effectively and the sales of fresh packaged milk rose substantially in Saudi Arabia with Almarai seeing exponential growth as "annual sales rose to 28 million liters in that year, growing to 65 million liters in 1986, to 140 million liters in 1991/1992, to 160 million in 1993 and 190 million in 1996."

It is important to understand that per capita income and consumption of dairy products has grown slowly in Saudi Arabia and that explains the 4% growth in dairy sector. However in the coming years, more rapid growth in expected, and more players will be entering the market. For now Almarai has 50% of market share and Alsafi has 30%. The distribution network of Almarai caters to the needs of 17,000 Saudi consumers on daily basis.

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The distribution is divided into four sales regions and 28 distributions outlets. Big refrigerated vehicles are used to provide products on 350 routes. These are all highly important and critical factors in the success of dairy sector's marketing communication because it is not only about reaching the consumer through media and promotions but to actually make the product available in the right place makes all the difference. It is achieved through a thorough and well covered distribution network that makes sure that even the most rural places have fresh laban and milk available so as to meet the demands of locals as well as tens of hundreds of visitors that come to Saudi Arabia to perform holy rituals each year and almost in every season.

Salesmen and other key people in the supply chain are also equipped with latest technology and computer facilities so they can access critical data and provide information on latest sales, inventory and supply requirements back to the manufacturers. That helps in making sure those products are available at all times to all consumers.

REFERENCES

"About Almarai Company" Available online http://apa_dtp.tripod.com/almarai.htm#Sales & Marketing

"Saudi Arabia Dairy Industry" Available from http://www.agrisouk.com/industrie/lait/saudidairy.htm

Al Safi Foods. The World's Largest in Integrated Dairy

Farm. http://www.alsafi.com.

O'Brien K (2000) Rites of passage. Dairy Industries International 65-27 -- 29.

Anon (2000) Import and Export Statistics. Riyadh, Kingdom of Saudi Arabia: Ministry of planning, Central Department of Statistics and Foreign trade.

http://www.agrisouk.com/industrie/lait/saudidairy.htm

http://apa_dtp.tripod.com/almarai.htm#Sales & Marketing.....

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