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China Mengniu Dairy SWOT & PESTLE Analysis

ID : 52664653| Sep 2020| 15 pages

COMPANY PROFILE -China Mengniu Dairy

Business Sector :Food Processing, Dairy, FMCG

Operating Geography :HongKong, China, Asia, Global

About China Mengniu Dairy :

China Mengniu Dairy Company Limited is a manufacturing and supply chain for quality dairy products based in the Republic of China. It was founded in 1999 and listed in Hong Kong in 2004. It is committed to supplying consumers with diversified products, including liquid milk, ice cream, milk powder and other supplements. Their headquarters are based in Inner Mongolia. The total number of employees as of 2020 is approximately 37894. The companies’ major subsidiaries include Mengniu (China) Investment Company Limited, China Mengniu International Co. Ltd and Plant Base Limited. Through its subsidiaries, the company is also invested in the manufacture of plant-based beverages. The Company has also initiated a program, providing essential nutrition to teenagers and children. Mengniu as a reputed nutritional and healthy food company, has followed up with the CSR program since 2017, named “Mengniu Nutrition for All.” It is not solely focused on providing underprivileged children with essential dairy commodities but it has also made a conscious effort to help young people by promoting “spiritual companionship” as well.
Mengniu has established strategic relations with Arla from Denmark, WhiteWave from the US and AsureQuality from New Zealand- therefore, they have worldwide access to premium resources and advantageous alliances. China Mengniu Dairy Company Limited has won several awards including the prestigious award from Wellcome for “Outstanding Category Performance Award- Milk and Dairy” garnering the title of the Only Award-Wining Dairy brand from China chosen by customers.

China Mengniu Dairy Company’s unique selling proposition lies in being China’s leading dairy product supplier and ranks among the world’s Top 11 Dairy Enterprises. Mengniu’s mission statement reads “The strength of a nation depends on the strength of its young people. Therefore, it is our mission to provide nutritional and healthy products to youngsters in China.”

China Mengniu Dairy Revenue :


RMB 39,857.2 million - FY ended 30th June 2019
RMB 34,474.3 million - FY ended 30th June 2018

Competitive Analysis of China Mengniu Dairy

SWOT
PESTLE
The SWOT analysis for China Mengniu Dairy is presented below in a matrix followed by the detailed analysis report:
Strengths
Weaknesses
1. Application of effective marketing strategies
2. Advancing innovation through setup of “Dairy Cattle Research Institute”
3. Positive brand image among the consumers.
4. Stable high-quality growth higher than industry average.
5. Initiated various projects to improve milk source management and operating capacity.
6. Premium brand image certified by numerous awards and accolades

1. Deterioration of operating performance of Yashili
2. Loss of confidence in local brands such as amongst Chinese population
Opportunities
Threats
1. Increase in China’s GDP and consumption
2. Growing demand in developing countries
3. Internationalizing to integrate into global market
1. Increase in plant-based alternatives to dairy
2. Global climatic change deterioration would affect the milk production capacity worldwide

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Detailed SWOT Analysis of China Mengniu Dairy

Strength

1. Application of effective marketing strategies: Mengniu has always used various marketing strategies to increase the brand awareness and sales of its products with different strategies applied to different products. In 2019, it launched Milk Deluxe with fully redesigned packaging and “Scan the code to win a field trip” activity owing to the success of popular programs “Super Vocal” and “Back to Field Season 3”. Such initiatives helped them increase the product’s sales to a great extent. It also sponsored the popular TV program “Sing! China “through which it increased the brand awareness of its product Champion. Yoyi C series also came up with new packaging to highlight the live bacteria concept. The packaging with the ambassadors’ images helped it to strengthen their position in market. It also adjusted its channel strategy so that the infant milk business was placed on mother-and-baby store channels whereas adult milk formula and nutritional products were placed on KA channels. It also planned to increase its brand awareness through upgrade of brand image, appointing new brand ambassador and implementation of omni-media marketing plan. It also involved in title sponsoring variety shows, advertising at top sports events and mounting large scale promotions.

2. Advancing innovation through setup of “Dairy Cattle Research Institute”: Mengniu gives a lot of importance to research so as to come up with innovative products to meet customer demand. In May 2019, it set up “Dairy Cattle Research Institute” in the Horinger county, Hohhot city. Its core expert team consists of 25 top local and overseas experts of the industry. It has strategic cooperation with 50 top enterprises and academic institutes in the world. At present, the institute has under it a China-Denmark Research and Development Demonstration Farm, the Practice Teaching Base of China Agricultural University and the National Key Laboratory Test Base of Inner Mongolia University. The institute aims for technological research and development in dairy industry to promote dairy industry as whole. Mengniu wants to help China’s dairy industry to enter into the era of 4.0 with the help of internet by using the model of “Dairy cattle + internet” so that China successfully competes in the global market.

The remaining section under "Strengths" is available only in the 'complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Tofutti Brands
  • Kite Hill
  • Exo Protein
  • TerraVia Holdings

Major Brands :

  • Milk Deluxe
  • Just Yoghurt
  • Fruit Milk Drink
  • Suibian
  • Champion
  • Yoyi C
  • Yashili
  • Dumex
  • Reeborn
  • Doraler
  • Shiny Meadow
  • Modern Meadow
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in China Mengniu Dairy Analysis Report

1. China Mengniu Dairy Company Limited 2019 Interim Report - http://www.mengniuir.com/attachment/2019092716480140029029256_en.pdf
2. China Mengniu Dairy posts 751 million yuan loss as milk powder unit Yashili dents profits - https://www.scmp.com/business/china-business/article/2083400/china-mengniu-dairy-posts-751-million-yuan-loss-milk-powder
3. Mengniu Records Brilliant Results in 2019 Growth of Revenue and Net Profit Lead The Industry - http://www.mengniuir.com/attachment/202004091441071752277008_en.pdf
4. GLOBAL DAIRY CONSUMPTION GROWTH TO CONTINUE - https://dairy.ahdb.org.uk/news/news-articles/august-2019/global-dairy-consumption-growth-to-continue/#.Xql_5RQzbIV
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SWOT & PESTLE.com (2020). China Mengniu Dairy SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/china-mengniu-dairy/ [Accessed 24 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

China Mengniu Dairy SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.

Copyright of China Mengniu Dairy SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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