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Al Rawabi - 4P analysis

This section conducts Al Rawabi 4P analysis to better understand product, price, place and promotion.

P 1- Al Rawabi Products

Products packaging features

Al Rawabi products are highly credited for their plastic packaging services, a newly introduced feature in the Middle East. Innovation in packaging lead to the company gaining 7% of the market shares in the recent years, according to CEO and has been an enormous feat of achievement.

Technology & Innovation:

The company has keenly invested in technological advancements to ensure better quality in services. The 13500 cattle stock is carefully protected with an automated cooling system that minimizes heat waves in the cattle farm. In addition, water cooling systems, advanced roofing features, clean bedding and fresh drinking water ensure good health of the cattle stock for sustained quality in milk production (Al Rawabi).

Al Rawabi resorts to the most advance technologies in the farm with a diagnostic unit in the farm laboratory, a cattle hospital, post mortem unit and an advanced bio security system that ensures happy living among the herds.

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New Products in the market

Launch of new products in cheese and coffee in addition to the milk, yogurt and juice section since 2016 has been part of business expansion strategies of the company. The company has targeted production of functional products such as the "super milk" enriched in Vitamin D with an investment of Dh 2 million in R&D. Such product launches have been strategized to substantial competitive advantage as about 76% of the people in UAE are Vitamin deficient (Scott, 2014).

P2 - Price:

The UAE government has price caps on milk prices so that the market is not monopolized. Government regulations ensure that product prices are under control and affordable. It appears that the Al Ain Dairy, owned by AL Rawabi, UAE and Almarai, Saudi Arabia have control over 85% of the market shares (Scott, 2014).

Sales figures of AL Rawabi products indicate high customer perceived value as even with new product launches such as the "super milk" that cost around Dh12 for 2 litres, enormous sales of about 180,000 litres are recorded on average every day.

The company targets returns on 2% - 3% on regular products "as fresh milk is a perishable product and the shelf life is only five days," in the words of Dr. Ahmed El Tigani, CEO which is a fairly decent margin for a dairy company selling to millions of customers in UAE.

P3 - Place

The UAE Dairy market has drawn international competition for years. Companies like the Fonterra, a New Zealand dairy company has an extensive warehouse on Jebel Ali, Dubai to support the demand for dairy products in Middle East, Africa and Central Asia. So, although a market leader in dairy products, Al Rawabi faces oligopolistic market competition that requires established supply chains, "just in time" inventory management systems and distribution centers for sustained geographical presence and operations. Such assets enable the company to deal with growing international competition, rising production, delivery and agri feed costs (Algethami, 2016).

P4 - Promotions

Super product portfolios have contributed to 12% rise in revenues in first half of 2018 and such gains were attributed to "solid business strategy" of the company as per Al Rawabi CEO, Dr. Tigani. The company management has therefore been proud of promotions of the expanded product port folio beyond dairy products to food. (Bridge, 2018)

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