On
1 March, NBDG launched a rose & aloe flavoured yoghurt onto the market.
However, in view of its sales channels, it is foreseeable that it cannot make
waves in the market.
On 1 March, Ningbo Dairy Group Co., Ltd. (NBDG)
launched a new product, rose & aloe flavoured yoghurt under the Yoyou
brand.
In its marketing 3 points are highlighted:
-
Milk sourced from the Hangzhou Bay ecological
dairy farm's herd of Australian cows. The milk's CFU (= colony-forming
units) does not surpass 50,000/ml in general, and the milk's protein
content is up to 3.2%
-
Strains from DSM N.V., including 5 live flora
such as lactobacillus bifidus and lactobacillus casei, to balance the
human gastrointestinal flora
-
Addition of rose and aloe to enrich the taste and
to help the consumer to stay in shape
NBDG is mainly involved in dairy farming, liquid dairy (raw milk processing
capacity: 200 t/d) and technology import/export. Its dairy products comprise fresh
milk, sterilised milk, modified milk and fermented milk. It is known for its
home delivery service, covering half of Zhejiang Province. "Every day we offer
a delivery service to over 700,000 families,' is the claim on its official
website.
However, in view of its sales channels, CCM predicts
that this new product will not make waves in the yoghurt segment from a
national perspective.
There are some positives certainly. The product is positioned low/mid-market,
priced at USD0.7/220 g (RMB4.6, USD0.3/100 ml), compared with:
-
Mengniu big fruit grain yoghurt (yellow peach +
aloe): USD1.4/260 g (RMB8.9, USD0.5/100 ml)
-
Yili big fruit grain yoghurt (aloe): USD0.9/180 g
(RMB5.9, USD0.5/100 ml)
-
Bright Dairy yoghurt (aloe): USD2.6/450 g
(RMB16.9, USD0.6/100 ml)
Consumer demand for new yoghurt varieties has led to many aloe and rose
yoghurts being launched, however few combine the 2 ingredients. "It is targeted
at office workers, consumers looking for more regular eating patterns and
female, serving as a meal replacement' comments manager Chen from NBDG.
However, the product's prospects rest on its being marketed in home delivery
instead of E- commerce platforms, a serious constraint if scale is to be
achieved. Unlike Mengniu, Yili and Bright Dairy, NBDG is focusing on fresh
products marketed in its immediate vicinity, mainly Ningbo City and the
surrounding areas. Home delivery should deliver results up to a point, but with
no efforts in supermarkets and stores, or online, national success is not a
possibility.
In reality the company lacks the funds and market influence to compete on a
wider level – and the problem is exacerbated as it has to resort to low-pricing
to build a presence. Inevitably, when larger dairy companies launch similar
products, its sales will be hit significantly.
NBDG's
Yoyou rose & aloe flavoured yoghurt
Source: Ningbo Dairy Group Co., Ltd.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta.
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Tag: yogurt