Republic of the Philippines

BULACAN AGRICULTURAL STATE COLLEGE

Pinaod, San Ildefonso, Bulacan




INSTITUTE OF MANAGEMENT



A CASE ANALYSIS





ANDEC HI-CALCIUM MILK





In partial fulfillment of the Requirements of the Subject
MARKETING MANAGEMENT






GROUP 2
Kelvin Lejar Aga
Coleen Alegre
Cindy Domingo
Michelle Estarez
Liezel Fernandez
Haezel Leocania





MS. IMEE ESGUERRA
Subject Instructor




July 7, 2014
I. TIME CONTEXT:
November 2000

II. POINT OF VIEW:
Markus Gonzales, one of Andecs brand managers.

III. CENTRAL PROBLEM:
What marketing plans could Mr. Gonzales suggest to the senior
management to bring back Andec to the Philippine market?

IV. SUB-PROBLEM:
1. In what way can Andec differentiate itself from the other competitors
brands in the market?
2. What type of buying decision behavior is involved in the purchase of
milk products?

V. OBJECTIVES:
1. To arrest the declining sales of Andec.
2. To recover the losses of P60M.
3. To regain its composure in the milk industry and to maximize
profitability.
4. To identify the appropriate market segment and repositioning of the
brand.
5. To launch the Andec into the market.
6. To produce milk not only for the growing up but also for infants.

VI. AREAS OF CONSIDERATION:

Strength:

1. Andec has more calcium and other important vitamins than normal full
cream milk powders.
2. A high calcium milk formula with vanilla flavor.
3. Andec has marketed internationally and became a leading full cream
milk brand in the other Asian markets, specifically Indonesian who
captured 90% in the market.
4. There are 5,500 retail customers strategically located nationwide.
5. Andec has two variants for children 4 to 8 yrs.old and for those 9 yrs.
old and above. Formulation also safe for 1 to 3 yrs.old.

Weaknesses:

1. Competitors specially Nido has been in the market for so long and has
already become a household name.
2. No distinction in the packaging is made for each variant.
3. 15% price premium over its leading competitors, because of its higher
calcium content.
4. Poor performance of Andec in the Philippines.


Opportunities:
1. If Andec will enter a new target market which is for infant, it will
be a great opportunity for them to cover the wide/large market share in the
Philippines due to lack of competitors.
2. Awareness of the importance of calcium was starting to create a
demand and a trend of introducing calcium-associated products into the
market.

Threats:
1. Major competitors like Nido.
2. Indirect competitors are milk in different forms like filled milk and
skimmed milk, fresh milk and etc.
3. Consumer may also purchase substitute that do noit belong to the milk
category such as calcium fortified juices, calcium supplements and
calcium bearing beverages.

VII. ALTERNATIVE COURSES OF ACTION (ACA):
1. Launch new variants of Andec Hi-calcium milk which is suitable for
infants.
2. Use marketing strategy (4Ps).
3. Produce smaller pack or swak pack of Andec Hi-calcium milk.

VIII. RECOMMENDATION:
In order to bring back Andec, Mr. Gonzales should suggest product, price,
promotion, and place or (4Ps) of marketing strategies.