“Aarong Dairy: Marketing mix”
Submitted to: DR. Jashim Uddin Ahmed
Mohammed Mostafizur Rahman
ID# 132 0478 060
Date: 10th January, 2014
This report is based on the marketing mix of Aarong dairy company which is under BRAC Social Enterprise. The current market situation, position, segmentation, SWOT analysis and marketing mix is described here along with the history and background of Aarong dairy company. I have analyzed the customer behaviour and current market situation of Aarong dairy by using secondary data as there was limitation to gather primary data because of the current political turmoil.
BRAC’s microfinance program used to ...view middle of the document...
Aarong Dairy has 100 collection and chilling stations located in 25 districts, including 10 located in ultra-poor areas. The enterprise collects 102,559 litres milk daily and serves 40,000 farmers, 64% being women. Aarong Dairy has 23 Distributors and 37 Sales centres nationwide, covering 16,000 outlets out of 23,000 and enjoying an overall market share of 22% with a dedicated consumer base of around 500,000. More than 2 packets of Aarong Milk are produced every second.
Aarong dairy’s original mission was to grant farmers market access, ultimately helping them generate income. Over time, its goals have expanded to serve high quality milk product to their customers. With inconsistent electricity and therefore refrigeration, dairy products generally are not widely available in Bangladesh. 85 percent of Bangladesh still relies on the ‘informal’ milk market which delivers bulk amounts of raw milk to consumers. Aarong dairy caters to the 15 percent of Bangladeshis who rely on the formal milk market which sells processed and packaged milk. In essence, Aarong Dairy channels milk from rural areas into urban areas while channeling urban money into rural areas.
1999 | Ghee and low-fat milk products launched |
1998 | Commercial operations started with the launching of liquid milk product |
2000 | Flavored milk products introduced in poly-pack |
2001 | Production of UHT milk started |
2006 | Production capacity of liquid milk increased |
2008 | Branded powdered milk product introduced |
In rural Bangladesh, almost two out of every three households rear cattle to produce milk for personal consumption. Surplus milk can be sold directly to neighbors or in the local market. The average dairy farm has 3.5 head of cattle, with very low average yields of 200-250 liters per 305-day lactation. Low herd yields generally reflect poor management practices and inadequate investment in genetics and veterinary services. In Bangladesh, dairy farming is generally considered to be a subsidiary profession, as male farmers are often more inclined toward field crop agriculture. Traditionally, the Bangladesh dairy sector has been dominated by the Doodhwala and Ghosh communities consisting of small-scale intermediaries who collect fresh milk for processing into ghee, curds, sweets and other products. In the absence of refrigeration, fresh fluid milk typically represents a very small portion of the market. In 1998, Aarong, the Bangladesh based development organization, launched Aarong Dairy to assist its village organizations in dairy production and market development. Aarong offers microfinance loans for livestock and provides a range of market services, including transportation, pasteurization, processing, branding and distribution. Independent dealers typically purchase milk directly from approximately 40,000 farmers and transport it to one of Aarong Dairy’s 100 chilling stations, which are mostly located in the western divisions Khulna,...