Expansion of a Yoghurt Producing Company

Write 8 pages with APA style on Expansion of a Yoghurt Producing Company in the Market of the United Kingdom. The British dairy industry has garnered success both in national and international business. Analysts believe that by 2020, the domestic demand for dairy products in the U.K. would require approximately five billion litres of additional milk production (Dairyco., 2014). This proves that new companies can enter the U.K. dairy industry and reap some benefits of the growing demand therein.From the above graph, it can be claimed that the average demand for milk (in the form of different dairy products) in the U.K. is more than its supply. The U.K. primarily imports different types of desert products such as yoghurt and milk powder, from other countries. The term “dessert deficit” is very popular in the U.K. dairy industry. Almost 40% yoghurts sold in the U.K. are imported from other countries of Europe, especially France. It is estimated in 2014 that total yoghurt consumption in the U.K. is 740k tonnes. of which 296k tonnes is imported (Dairyco., 2014). As a result, the yoghurt company (case company) will be able to successfully launch its product in the U.K. market and increase its sales, provided proper segmentation strategies are framed.The above table shows the market trend of the dairy industry in the U.K. Total yoghurt expenditure in the U.K. (2014) so far is slightly below £1.5 billion. The average price of every kilogram of yoghurt has increased by 4% from 2013 to 2014, to a level of £2.49/kg (Dairyco., 2014). Total yoghurt sales in the U.K. in 2013 were 593 thousand tonnes.The above graph implies that sales of both private labelled and branded yoghurts in the U.K. are increasing with time, but demand for private labelled products are higher than the branded products. However, yoghurt producing market of the U.K. is highly competitive in nature. Some of these companies are Muller, Activia, Actimel, Yeo Valley and Onken (Dairy Reporter, 2014).

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