SEMESTER 1 SESI 2017-2018

SARJANAMUDA PENTADBIRAN PERNIAGAAN

EPPM2073 – Pengantar Pemasaran

Prof. Madya Dr. MAISARAH BINTI AHMAD
Multinational Company: Almarai Company

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Muhamad Sazeli bin Mohd Nazir No. Matrik GA04111
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Azizul bin Musauddin No. Matrik GA04098 bba uk m 20

Yukaba Febryani Binti Ahmari No. Matrik GA04132

Chairman Background Kum pulan 27

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Name:
Sultan bin Mohammed bin Saud Al Kabeer

Qualifications:
Holds a bachelors degree in Economics and Political Sci-
ence from King Saud University, Saudi Arabia.

Key Positions:
Chairman of the Arab Union for Cement & Buildings Materi-
als Co. Managing Director of Al Yamama Cement Co. Chair-
man of Al Tayyar Travel Group, the Arabian Shield Coopera-
tive Insurance Co. Owner of Nova Al Jezera Establishment,
the Arab Cubs Establishment and the Technical Projects &
Contracting Establishment.

Social and Humanitarian Positions:

Member of the Board of Trustees of King Abdul Aziz and His
Men for the Care of Talents, the Equestrian Club, the Gradu-
Sultan bin Mohammed bin
Saud Al Kabeer ates Association in the Capital Model Institute and the Piety
Chairman Charity Society. Honorary Chairman of the Saudi Heart
Association, the Saudi Chest Medication & Surgery Associa-
tion, Saudi Hearing Disability Association and the Saudi
Hypertension Association.

RM15.4b
Net Worth
No: 474
Forbes Lists:
No: 3
of Billionaires
Saudi Arabia

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Vision, Mission & Values

Vision
To be the consumer’s preferred
choice by leading in chosen Company Background
markets with superior food and
beverage products. Phase 1
At 1990s, Almarai entered a period of restructuring and reinvestment that
Mission took it from a decentralized structure to a centralized structure.
To provide quality and nutritious
food and beverages that enrich Replaced 5 decentralized processing plants with first central processing
consumers’ lives every day. plant.

Values Replaced ten small decentralized dairy farms with four large dairy farms
Adaptable in Al Kharj in the central region.
Sharing
Passionate In late 2005, Almarai commissioned a second, larger central processing
Innovative plant, incorporating a new cheese plant. They also commissioned two
Respect new super-farms. In the same year, Almarai moved from being a private-
Excellence ly owned company to a publicly listed company and now have around
70,000 shareholders. At the end of 2011, their market capitalization
exceeded SAR23 billion.

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Company Background
Phase 2
Bakery
In 2007, Almarai entered the bakery products market by acquiring Jeddah-based
Western Bakeries. Two years later, they started the construction of a new bakery
Saudi's Almarai raises stake in PepsiCo JV - Retail,GCC,Americas,Middle East,Banking & Finance,Retail,Banking & Finance,Retail - ArabianB …

facility in Al Kharj. b
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Poultry Sau di's A lmarai raise s st ak e in P epsi Co JV

In 2009, this company added poultry products to their portfolio through the acquisi- Gulf kingdom's largest food producer increases stake in International Dairy and
Juice to 52%

tion of Hail Agricultural Development Company (HADCO). After investing in a

world-class production facility, they also launched the new premium poultry brand –
Alyoum.

Geographical expansion
In 2009, Almarai launched a joint venture with PepsiCo. – the International Dairy
and Juice (IDJ) Company.

In 2010, entered the infant nutrition market with the construction of the region’s first By Andy S ambidge

infant nutrition plant at Al Kharj. Almarai formed the International Pediatric Nutrition Wed 28 Mar 2012 06:48 PM

Company (IPNC), a 50-50 joint venture with Mead Johnson Nutrition. Its infant nutri- Almarai, Saudi Arabia’s largest food producer by market value, on Wednesday said it has raised its
stake in a joint venture with PepsiCo to 52 percent from 48 percent.
tion products will be co-branded under Almarai and Mead Johnson’s flagship range,
Enfa. http://www.arabianbusiness.com/saudi-s-almarai-raises-stake-in-pepsico-jv-451740.html 1/11

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Company Background
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Almarai since 1977

44,500
employees Market Cap
M
54.8b SAR
5
650
more than
Paid Capital
products
8b SAR
500m
servings of bread
6 annually
categories 80
Distribution Warehouse
200m
production capacity
18 Million 1b litres annually
daily consumers per year

Public Listed 2.5m

49,700 bottles per day
investors

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Company Achievement
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2016
No. 1 Top FMCG in MENA
No. 1 ranking in Saudi Arabia
Almarai on Forbes Lists
1st time break 2b SAR net profit
189 Top Regarded Companies
No. 27 in Top
100 companies Arab World 101 World's Best Employers
33 Innovative Companies
2015
One of the world’s
most chosen brand’s 1,131 in Profit
811 in Market value

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Almarai Marketing Strategy

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‘Quality you can trust’ is a far-reaching promise

that applies to every aspect of Almarai’s business.

Crop cultivation Extraordinary Best-in-class Exceptional transport Consumer insights

and selection care for farm manufacturing and logistics and powerful
animals and processing capabilities branding

1
Quality is the focus of all of
Almarai’s farming activity,
2Almarai’s farms look
and that means using only
the best animal feed. The
company imports most
of the feed: a crucial step
for preserving domestic
water resources. A
growing proportion of
forage already comes
from farms in Argentina,
the USA, and Europe.
after their livestock to
an exceptionally high
standard, ensuring
maximum yields and
quality. Dairy herds have
24-hour access to
professional veterinary
support, year-round
shaded housing, and air
cooling and showering.
Poultry flocks receive
equal best-in-class care,
from highly nutritious feed
to best-quality water and
air control.
3
The technology and
capacity of Almarai’s
manufacturing and
processing capabilities
are exceptional, with
bakeries and factories
delivering the highest-
quality output on a mass
scale. Production facilities
are constantly being
expanded, renovated,
and improved, as the
company strives to
operate to the highest
standards of international
best practice and meet
ever-increasing demand.
4
In terms of the scale
of assets, distances
5
Almarai has always
worked to earn the trust
covered, and quantities of its consumers, and has
delivered, Almarai’s become a brand leader
Transport and Logistics that is known and loved by
division is larger than any millions. Commitment to
logistics company in the quality is at the heart of the
Middle East. More than company’s status as the
7,700 trucks and cold Middle East’s leading food
trailers deliver close to and beverage producer
two billion kilograms and distributor, and
of products every day, feedback is continuously
on time and in perfect gathered to help increase
condition. customer satisfaction.

Almarai: Segmentation Kum pulan 27

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1
Demographics:
:: Almarai product range covers 3
various levels of society, age, Psychographics
gender :: Be an option for those who care for a
- Baby healthy lifestyle
- Kids :: Who are highly educated
- Parent :: Quality product choice

Segmentation

Geographic 2
:: GCC (Gulf Countries Council)

Almarai: Targeting Kum pulan 27

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:: Individual
:: Family
:: Student

Private Sector
:: Charity Ngo’s
:: Hotel

Government Sector
Target :: Ministry of Education
:: Public Hospital

Food Industri Operator

:: Bakery
:: Catering
:: Restaurant

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2 Established market supremacy and has

lead the market with its capability of
delivering high quality products to
Almarai: Positioning more than 70,000 customers within the
Gulf Cooperation Council (GCC) daily
1 Preference of Almarai products.
3 Position the brand in the market as
Geographic expansion, Almarai entered
Jordan and Egypt as prime territories for
sales growth in all categories and is also ex- premium quality food and beverages
porting to other markets. that are fresh,
Quality will always be fundamental, joined nutritious, healthy and irresistible
by sustainability as an essential prerequisite
in implementing each of the three strategies.

Almarai around the world

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Since establishment in 1977, Almarai has grown through carefully planned investment to become
the Middle East’s first vertically integrated dairy company and the region’s largest producer and
distributor of food and drink. Almarai products are market leaders in Saudi Arabia and wider
regional markets.

Jordan 1 4 5 6

Kuwait 6

1 Dairy farms in Saudi Arabia

and Jordan.

Hail Bahrain 6 2 Arable farms in Saudi

Egypt 4 5 6 Qatar 6 Arabia, Argentina, the
USA, Poland and Ukraine.

UAE 5 6
3 Poultry farms in Saudi
Riyadh Arabia (Hail).
Al Kharj
Oman 6
4 Manufacturing in Saudi
Arabia (Al Kharj, Jeddah
Jeddah Saudi Arabia 1 2 3 4 5 6 7 and Hail), Jordan and Egypt.

USA 2 5 Transport and logistics

in Saudi Arabia (Al Kharj,
Jeddah, and Hail), the
Poland 2 UAE, Jordan and Egypt.

6 Sales depots throughout

the GCC region, Jordan
and Egypt.
Ukraine 2
Argentina 2
7 Head office in Riyadh.

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Competitor of Almarai
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Market Share: 38%

National Agricultural Development

Company (NADEC)
Market Share: 23%

Al Ain Dairy Farm

Market Share: 15%

Agthia Group PJSC Abu Dhabi

Market Share: 8%

Others Market Share: 16%

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4P’s of Almarai
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Promotion To increase demand for products they use:

a) Television Advertising
- Focus has shifted from “product-oriented’ television commercials to
“emotion-oriented” television commercials.
- Target market through emotional appeals or connect
- Specifically targeted children by making use of animations
- Showcased on television citing a mother-child relationship to
connect with customers

b) Spotlight through sponsorship of various reputed events

c) Social Media
- Dedicated official Facebook page with members.
- Online gaming initiative “Almarai Hoops” is a gaming application
found on Facebook, Google or the Apple app store

d) Integrated Brand Promotion

- Western Bakery Company Limited.
- International Dairy and Juice Co
- Hail Agriculture Development Co

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4P’s of Almarai
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Product -Juices: Almarai always uses the best fruit to make the juices that the cus-
Juice tomers love. It maintains good balance between good health and great
taste.

-Home Snacks: Snacks products are the tastier and the simple one which
would give relishing taste.

-Yoghurts and Desserts: Pure and calcium-rich favorites for the entire family.
Desserts are made from 100% natural, fresh cow's milk.

-Culinary Products: Almarai provides the tastiest cheeses, and richest creams
which makes mother's work easy in the kitchen.

-Dairy Liquids: There is a complete range of delicious laban and milk based
dairy products for the entire family.

-Kids Products: Kids products prove to be a fun and a healthy bunch for kids.

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4P’s of Almarai
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Price - Almarai decides its price on the basis of competition

- Some products are cheaper for example milk, bread
- Constantly reviewing market prices

Almarai has long-haul fleet which transports raw milk from dairy farms to
the Central Processing Plants and then it transports the finished goods from
the production site to different designated sales locations. Almarai reaches
to more than 42,000 shops within the GCC countries on daily basis. It en-
sures that the products are properly packed with appropriate temperatures
Place for different products. The transports are specially designed so that the
products are not spoiled and last for longer time.

Almarai transports the finished to small grocery stores and supermarkets.

Almarai enjoys increasing incomes
and demands that come from supermarkets where one shop for one's
weekly requirement in a single visit.

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Conclusion
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The success of Almarai is because of its unique infra-

structure which includes farms, dairy, juice and
bakery processing plants. And also it is determined
by the marketing and distribution expertise, all of
which are working towards delivering a quality prod-
uct to the consumer.

Almarai has been expanding and growing in a very

noticeable manner since they have launch back in
Riyadh Saudi Arabia.

Today, Almarai’s paid up share capital amounts to

SAR 8.0 billion, consisting of 800 million fully paid
and issued shares of SAR 10.00 each.
Almarai’s available and tradable shares by the end of
2016 amounted to 290 million shares, representing
36.3% of its total available shares. As at 31st Decem-
ber 2016, Almarai’s market capitalisation was SAR
54.8 billion.
Consumers
at our heart
ANNUAL REPORT 2016