Marketing: Wonder Cow - Case Study Example

According to Greco, Mazze and Michman, marketing aspects can be appropriated based on the information given and features such as product development, competitive strategy and promotion strategy are only a few of those which can be affected. Developing Wonder Cow Yogurt Drinks are based upon the information presented through the lifestyle analysis of the targeted school children which can yield the needs and wants of consumers. The second type of strategy is Porter's Generic Strategies. This strategy was developed by Michael Porter who argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation (Best, 2004).

The Wonder Cow Yogurt is applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. The Dairy Farmers Britain applies this at their business unit level. They are called generic strategies because they are not firm or industry dependent. The following table illustrates Porter's generic strategies: Since the Dairy Farmers Britain (DFB) is a low cost company, generic strategy is very appropriate for them for being the low cost producer in the milk drink products industry for a given level of quality (Go, 2001).

DFB sells its products either at average industry prices to earn a profit higher than that of rivals, or below the average industry prices to gain market share. The cost leadership strategy usually targets a broad market.DFB succeeded in cost leadership often have the following internal strengths: 1.) Access to the capital required making a significant investment in production assets (Michman, 1991); this investment represents a barrier to entry that many firms may not overcome. 2.) Skill in designing products for efficient manufacturing, for example, having a small component count to shorten the assembly process. 3.) High level of expertise in manufacturing process engineering. 4.) Efficient distribution channels.

However, each generic strategy has its risks, including the low-cost strategy. For example, other firms may be able to lower their costs as well. As technology improves, the competition may be able to leapfrog the production capabilities, thus eliminating the competitive advantage (Kotler, 2001). Additionally, several firms following a focus strategy and targeting various narrow markets may be able to achieve an even lower cost within their segments and as a group gain significant market share.