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, management concluded that continuous
investment in Andec would only mean incurring more losses. Andec will
remain in their inventory until a more effective marketing strategy could be
mapped out.

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?
3. What promotional strategies that Andec will apply to make an effective
awareness to its target market?

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 again the Andec into the market.


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 positioning of Andec in the Philippines.
5. Not suitable for infant

Opportunities:
1. Growing market of Milk Industry.
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, skimmed
milk, fresh milk and etc.
3. Consumer may also purchase substitute that do not 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.
If Andec will enter a new target market which is for infant formula, it will be
a great opportunity for them to cover the wide/large market share in the
Philippines due to lack of competitors.
2. Modify Andec formulation which is differentiated with other full cream milk
and create more effective marketing strategy.
3. Produce smaller pack or swak pack of Andec Hi-calcium milk.

VIII. RECOMMENDATION:
In order to bring back Andec, Mr. Gonzales should suggest ACA 2.
Develop the 4ps Marketing mix; the price should base on what their money
can afford because nowadays the parents are wise in terms of buying milks
products, they are not only looking for the calcium contents but they also
consider its reasonable price. Modify Andec formulation by reducing its
calcium content but still higher than the competitors brand to retain its image,
then add more Energy nutrients to support the energy needs of 4-8 kids and
adding more vitamins especially Vitamin D to support the growth development
of the body and bones of the 9 years old and above. The packaging label will
emphasize the Brand name and the identity of age bracket for better
recognition and awareness of what Andec have. Make an efficient
promotional strategy to make an effective awareness to its target market. This
will result to appropriate market segment and proper position of the brand.