Prepared For:

STRATEGIC MARKETING ANALYSIS ON DANO MILK POWDER BANGLADESH

Mr. Samy Ahmed

Faculty, School of Business
North South University
Course: MKT 460 ,Sec-02

Prepared by:

MD.Rakibul Islam Rakib

1010153 030

Major Strategic Contents:

Segmentation,Targeting,Positioning
( Achieve Competitive Advantage)
Strategic Planning Gap
Buyer Decision Making Process
Product Market Expansion Grid
Holistic Marketing
Cause Marketing

INTRODUCTION

Dano milk powder products are marketed all over

the country through established strong marketing
network to ensure sufficient supply the product to
the distributor.
According to company policy wholesalers, should
keep large quantity of product than that of retailers
where distributor supply the product with same price
and it is strictly controlled by the company
personnel through close monitoring
All distributors should sale company product
according to companys targeted plan and should
achieve this target.

An overview of Dano milk powder history in Bangladesh

Dano Milk powder is the leading milk powder

product in the Bangladesh.
Dano was introduced in the market in1962 by MD
Foods all over the world.
In 1995, Arla foods take over MD foods and
merger new company name as Arla Foods
Ingredient.
In 1998, Mutual Trading ltd was setup new
factory in Bangladesh for packing of Dano milk
powder product as per Arla Foods
recommendation and Mutual Trading Ltd changed
company name as Mutual Milk Products Ltd.

Operational System in Bangladesh

Arla Foods Ingredients, amba, Denmark

Arla Foods Ingredients, Bangladesh

Mutual Milk Product Ltd

Packaging Factory

Dano STP Process

Market Segmentation Strategy

Factors considered segmenting the
consumer markets of milk powder:
Psychographics factors
Behavioral factors
Demographic factors
Geographic factors
Positioning Strategy of Dano Milk Powder
Product differentiation
Image differentiation
Service differentiation

Target Market and Potential

Company target market focus on
four main areasMother and child
Active living
Healthy recovery
Conscious consumer

Types of Variable factors

Empirical factors

Target Areas

Geographic factors

Region

Dhaka-A, Dhaka-B, Dhaka-C,

Chittagong, Comilla, Sylhet,
Khulna, Barisal, Rajshahi

Demographic Factors

Age

Below 14;15-24,;25-34;35-44;45-54; and

above 54

Income

8000-10000; 10000-16000; 16000-20999,

21000-25999; above 26000.

Occupation

Student, Service, Business and Housewife.

Psychographics factors

Social

Lower, middle and upper,

Behavioral factors

Benefit, Loyalty Status

Hard Core loyal

Shifting loyal
Switchers

DANO STP process Strategic

relationship to create value

SWOT Analysis
Strength:

Wide Recognition
International Brand Image
Talented Workforce
Superior Technology
Better Product Quality Relative to the Rivals
Distribution System
Promotional Activity

Weakness
Opportunity:

Growing Marketing Demand

Increase Trade Barriers
Legislation

Threat

The Strategic Planning Gap

Intensive Growth

Dano is focusing in the market penetration strategy

to increase their growth rate.

Integrative Growth

Mutual Trading company ltd.

Diversification Growth

Dano is not concentrating on their diversification

growth. Because their current business is profitable,
that they do not require to step into diversification
strategy.

Pestle Analysis

Political
Economical
Social
Technological
Legal
Environmental

The Buying Decision Making Process

Five Stage Model:
Problem Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Behavior

Core Values of DANO

Holistic Development
Experience & trust
Maternal Love & Wisdom

Brand Personality:

Warm & caring

Dependable
Experience
Positive
Specialized & Evolving
Universally liked

Implementation of Product-Market
Expansion Grid Strategies:

Market penetration
Market development
Product development
Diversification

Companys Strategies for Strategic

Formulation

There are three Strategic Formulation :

Overall cost leadership.
Differentiation
Focus

Value-Chain Strategies

It involves entire supply chain

management meaning upstream and
downstream value-added flows of
materials, final goods and related
information among suppliers, the
company, resellers and final consumers.

Competitive Picture

INDUSTRY Analysis through

Porters 5 Forces Model
Michael Porters Five Forces Model:
Threat of new Entrants
Industry Rivalry
Substitute Products
Bargaining Power of Buyers
Bargaining Power of Supplier

Holistic Marketing Strategy of Dano:

Holistic Marketing ( Cont.

)
Internal marketing of DANO Bangladesh:

Senior management
Hiring Procedure
Motivation
Improves morale of employees
Less supervision
Fewer accidents
Chances of promotion
Increased productivity

Integrated marketing of DANO Bangladesh:

Marketing MIX Analysis ( 4ps)

Holistic Marketing ( Cont.

)
Social Responsibility marketing:
1. Performance Marketing:
.
.
.
.
.

Knowledge
Product Quality
Foreign Substances
Hygiene
Product Recall (ETHICS)

Environment( Plant, Resources, Recycling,

Climate change)
Relationship marketing :
Through Importance Of Channel for Better
Distribution. Lead Better Core Competence.
2.

Product Life Cycle:

Financial Statement
Unit Cost:
Unit cost of each 400gm DANO Milk Powder
is:
Unit cost =Variable Cost + Fixed
Cost/Expected
Unit Sales= 362 + 29000000/1000000=
391/

Markup Price = Unit Cost/(1-0.15)=

391/0.85= 460/-

Break-Even Sales= Fixed Cost / (Markup

Price Variable Cost)
= 29000000/(460 362)= 295918
units

Break-Even Revenue = Break-Even Sales

* Markup Price
= 295918 * 460= 136122280/-

Break-Even Point

Recommendation
Based On Cause Marketing:
Dano can also make a campaign against
child labor movement in Bangladesh.
In Childrens Day they can make events
for autistic children.
They can go to the rural areas were
people are not aware of their off-springs
health.
They can distribute winter cloths among
the poor people in the winter season.

Conclusion

The present study revealed that brand

preferences of milk powder according to
consumers choice
The present study showed that the
retailers rank of different brands for milk
powder in relation to various aspects
these are- Availability, Price, Quality,
Hygienic, Packaging, Sales Promotion,
Advertisement, Distribution System.

THANK YOU