A2 Milk vs other milk companies: Feel the different

Since launching in 2003, a2 Milk has challenged the traditional milk company. Customer health is the key point in the marketing campaign.

Positioning: Feel the different

In 2007, Keith published a book called “Devil in the Milk” stated that A1 type protein may cause harmful health risks. But this is still a controversial issue and has not had a clear conclusion so a2 Milk takes that opportunity and increase their revenue. The key point makes the difference for the product of a2 Milk is milk source. A2 milk is cow’s milk that contain only the A2 type of beta-casein protein rather than the more common A1 protein commonly found in regular milk which especially does not contain the proteins are at risk of causing some kind of disease (Keith, 2009).

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Where does a2MC branded milk come from? (Source from: A2 Milk Company)

Currently, most dairy products on the market contain both A2 and A1. Therefore, a2 Milk makes a new position in the market place vis-à-vis the competition and in the eyes of customer when they compare between different products (Iacobucci, 2014).

What is A2 Milk? (Source from: A2 Milk Company)

Segmentation and targeting – ‘Better for you’

Mixed grain milk is a popular breakfast meal in Western countries. However, for Gillian Fyvie, this will lead to stomach-ache and making her tongue swollen up. She allergic to all types of milk, soy milk, organic and milk types do not contain lactose except a type of cow’s milk from the a2 Milk production.

Dr Joanna McMillan explains a2 Milk (Source from: Australia’s Today Show)

According to customer feedback about a2 Milk product, kids more often asking for glasses of milk, whereas before they would only ask for water of juice (A2 Milk 2016). Moreover, a2 Milk company is a brand name and relate to a2 protein which help achieve high ranking keywords on the Internet. It also helps a2 Milk save their advertising cost and invest in smart marketing campaign. Slogan ‘better for you’ products was an unstoppable force. It describes healthier product that they felt better about consuming.

a2 Milk Testimonials 2013 (Source from: A2 Milk Company)

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Segment and targeting data (Source from: A2 Milk Company)

A2 Milk sales value that obtained from fresh milk, milk powder, cream and other dairy products which do not contain A1 has increased 80 times in just 6 months. This is also a key factor helping a2 Milk confident entering China – the booming market is valued at US $ 19.9 billion (Chris, 2016).

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Product portfolio, global presence and key metrics (Source from: A2 Milk Company)

Founded in 2000 by Dr Corran McLachlan – New Zealand scientist and Howard Paterson – agricultural billionaire and also the CEO of A2 Corporation, the market value of a2 Milk has increased more than doubled, up to 1.2 billion New Zealand dollars within the first 3 years. A2 Milk company has headquartered in Auckland and entered the UK market in 2012 and expanded to the US market last year. However, Craig Garvin – CEO of Parmalat milk company – stated that a2 Milk is destroy dairy industry with a marketing campaign that tell about benefit between A1 and A2 protein in milk products (Marketing Mag 2015).

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Growing consumer demand for health and well-being (Source from: A2 Milk Company)

In Australia, a2 Milk products are sold in all major grocery chains and more than 140 café stores, its stock has risen up to 189% when compared to the start listing in less than one year ago.

References

A2 Milk Testimonials 2013, Youtube, The a2 Milk Company, 7 August, retrieved 8 April 2016, <https://www.youtube.com/watch?v=lh-39deCX-c&gt;.

Chris, P 2016, ‘a2 Milk Company’s sales of infant formula to China have gone ballistic’, Business Insider, 17 February, p.1, retrieved 8 April 2016, <http://www.businessinsider.com.au/a2-milk-companys-sales-of-infant-formula-to-china-have-gone-ballistic-2016-2&gt;.

Dr Joanna McMillan explains a2 Milk on Australia’s Today Show 2012, Youtube, Australia’s Today Show, 20 November, retrieved 8 April 2016, < https://www.youtube.com/watch?v=_tQQZ-hynrM&gt;.

Iacobucci, D 2014, Marketing Management (MM), 4th edn, South-Western, Cenage Learning, Mason.

Keith, W 2009, Devil in the Milk: Illnes, Health and the Politics of A1 and A2 Milk, Chelsea green Publishing, North America.

Lewis, J & David, A n.d, ‘How to succeed in a commodity market’, Sweeney Research, retrieved 8 April 2016, <https://eysweeney.com.au/pdf/a2-milk-market-research.pdf&gt;.

Marketing Mag 2015, ‘Sacred cows: The secret to A2 Milk’s success’, Marketing Mag, 2 July, p.1, retrieved 8 April 2016, <https://www.marketingmag.com.au/hubs-c/sacred-cows-secret-a2-milks-success/&gt;.

NZX 2015, The a2 Milk Company – Investor Presentation – April 2015, NZX Limited, retrieved 8 April 2016, <https://www.nzx.com/files/attachments/211670.pdf&gt;.

What is A2 Milk™? 2015 Video 2015, Youtube, The a2 Milk Company, 31 May, retrieved 8 April 2016, <https://www.youtube.com/watch?v=Y5d5IoiH9eU>.

Student name: Ba Trung Nguyen –  211638346

Email: btnguyen@deakin.edu.au

Username: batrung187

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