Article

CASE STUDY: MARKETING PERSPECTIVE OF ALMARAI DAIRY FOOD COMPANY

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Abstract

The case is concerned with Almarai which is based in Saudi Arabia and is a leading dairy food company in the Middle East. The challenges faced by the organisation at home and overseas due to competition and changing market conditions are outlined and management is shown to be seeking further expansion. Attention focuses particularly on marketing activity, allowing discussion of existing strategies and future possibilities. Information was obtained from personal interviews with Almarai executives, supported by material from various company documents and the Internet.

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Article
Almarai is one of the well-known Fast Moving Consumer Goods brands in the region of Middle East, and is leading the market in majority of its product categories throughout the Gulf Cooperation Council (GCC). This case study aims to enrich our understanding about the success story of Almarai company in the GCC region. It focuses on analysing the dairy market in GCC and presenting SWOT analysis for the company. Additionally, this case study highlights the marketing mix strategies adopted by Almarai to maintain and grow its business in the GCC region. Finally, the key challenges faced by the dairy industry in the GCC region are presented. As a market leader in the region in dairy segment, the success of Almarai is attributed to its regular analysis of consumers’ demands and search of available options for introducing healthy items with high-quality nutritional values to satisfy their tastes and preferences. In order to achieve its vision, there is an emphasis on innovation at Almarai, and the company uses scientific methods to create new goods with the goal of expanding its product line and improving the lives of its customers.
Article
Purpose The purpose of this paper is to concentrate on management responses in terms of marketing and is intended as a basis for discussion of the effectiveness of actual policies, possible alternatives and future prospects. Design/methodology/approach There is much research that investigates the functioning of dairy food business, however, little attention is given to the responses of executives of the industry. This research aims to narrow this gap in the literature by focussing on the largest dairy food company in Saudi Arabia and its subsequent responses related to marketing. A case research of Saudi Arabian dairy food company, one of the market leaders in the entire Middle East, is advanced and discussed in detail. In addition, the paper highlights future challenges of its future expansion goals which would have implications for its operational, marketing and distribution strategies. Other important factors to consider are market differences, cultural conflicts, fluctuating exchange rates, cross‐border invoicing and financial transactions, tariffs and taxes and host country government regulations. Findings A number of dairy food companies in Saudi Arabia have been using varied competitive strategies over the last few years, but this study reveals how Al‐Marai uses strategy of market penetration to beat the competition. Promotion emphasises brand strengths across segments and an intensive distribution network is maintained locally, with new channels sought in Middle Eastern as well as South East Asian markets. Originality/value This paper provides a unique perspective of a dairy food company, which uses market penetration to beat the nationwide competition, thus stand high in offering quality merchandise across Middle East.
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