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
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
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Opportunity
This section is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for China Mengniu Dairy is presented below in a matrix followed by the detailed analysis report:
| Political | Economical |
1. China’s state policies to promote dairy industry
2. Political interference concerns impacting business expansion in Australia
3. Impact of escalating tensions between China and United States on sponsorships and promotions
| 1. Impact of fluctuations in foreign currency exchange rates |
| Social | Technological |
1. Changing attitude towards healthy, high quality food
2. Increasing concern towards animal welfare and impacts of dairy in environment
3. Transformation of consumer preference to plant-based alternative
| 1. Adoption of new technology to increase farm productivity and efficiency
2. Collaboration with Alibaba Cloud to launch consumer big data project
3. Embracing digitalization through management platform using information technology
|
| Legal | Environmental |
1. Compliance with various laws related to business ethics
2. Subjected to various laws to check for the high-quality milk source
| 1. Environmental factors would impact the milk production
2. Focused to create positive impact on environment
3. Practicing sustainability farming under internal operations
|
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Detailed Pestle Analysis of China Mengniu Dairy
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
1. Adoption of new technology to increase dairy productivity and efficiency: The dairy industry is going to get transformed with a lot of technological advancements and updates. Technology and information can be used to track the health and habits of the herd. It can detect when the cow is in heat to boost the chances of healthy pregnancies and enhanced milk production. With the help of trackers available in the market, tracking the health of a large number of cattle is now convenient. An overview is also available with vets for quick response and action. Drone technology is being used to check the location of herd. It also helps in monitoring the land and areas of repairment. Even facial recognition trials are underway for herd. This will then give information about each cow which would allow faster action. Robotic milking is also gaining wide popularity.
2. Collaboration with Alibaba Cloud to launch consumer big data project: In June 2018, Mengniu collaborated with Alibaba Cloud to officially launch Mengniu Consumer Big Data Project. This project included setting up data standards and their analysis to build a framework. The framework is used to integrate various data interfaces, data assets, data models and analysis to establish a people centered Mengniu Consumer Insights systems. This consumer insight system helps Mengniu to collect customer data such as customer information and their buying behavior pattern. This will help in research and development driven innovations and meet consumer demands. This plays an important role in product designing so as to meet the consumer demand and provide them with a better experience and satisfaction.
The remaining section under "Technological" is available only in the 'complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
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?
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References used in China Mengniu Dairy SWOT & PESTLE 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
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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China Mengniu Dairy SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.
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