“Lakspray” Milk Powder

Group-Oracle 1
 Introduction to LMF &
“Lakspray”
 The flagship brand of the Lanka Milk Foods Group
has a history of more than 45 years.

 Second only to Anchor milk in Tea Whitening

Category terms of sales volume.

 “Lakspray” is a pioneer milk powder brand in Sri

Lanka.

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 Vision and Mission

 Vision - “to become the most

desired entity and leader in the Sri
Lankan dairy industry “

 Mission – “to provide high-quality

dairy products to all, with a focus
on safety and nutrition.”

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 Main Products

 “Lakspray” Full Cream - Natural and prepared

from 100% pure cow’s milk, free from chemical
additives and preservatives.

 “Lakspray” Non Fat – An instant milk powder with

vitamins and minerals for health conscious
customers.

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Environmental Analysis

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SWOT Analysis

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 SWOT Analysis

Weaknesses
 Dropped market share within the last decade.(by
12%)

 Narrow focus. (limited on local market )

 High Cost of Production (increasing CIF price )

 The selling price of milk powder remains stagnantly

controlled.

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 SWOT Analysis

Opportunities
Immense opportunity exists to grow market share in the

liquid milk segment.

Huge investment on new tetra pack plant. (Rs. 280

Million )
Continuous investments in technology, talent and
infrastructure
Export Potential.

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 SWOT Analysis

Threats
 Intense competition in the dairy industry with huge
variety of products.

 Bad economic condition such as high inflation can

affect consumer buying behavior.

 Changes to government rules and regulations (Tax

and price ceilings).

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 PESTLE Analysis

POLITICAL & LEAGAL ECONOMICAL

•The imposition •The highly volatile

of a 15% VAT on exchange rates.
imported milk powder.
• Rapidly increasing
•Stagnantly controlled cost of production.
prices by the Consumer
Affairs Authority.

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 PESTLE Analysis

SOCIAL TECHNOLOGICAL

• Enhanced Consumer's •Ultra-modern,

knowledge about using sophisticated dairy
nutritious foods and a technologies.
balance diet.
•UHT processing
• DCD issue for some technology and Tetra
popular brands in Sri paper packaging
Lanka. technology.

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 STP

Segmenting

 Segment 1 - Kids Nutrition

 Segment 2 – Tea whitener

 Segment 3 – Low fat

 Segment 4 – Supplements

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 Positioning
Segment Positioning Strategy
Kids’ Nutrition “Mothers Trust for generations” as the main positioning strategy where
the enhanced nutritional facts will allow the brand to get the mothers’
attention over other brands.

Low fat “For health conscious families who respect for tradition” would be the
positioning strategy as this would be the superior local brand with
enhanced nutritional facts for people who values Sri Lankan products.

Tea Whitening ” Sri Lankans”` only traditional taste for tea” as the strategy for
positioning where the customer will select the brand as it is more closer
to their preferred local taste.

Supplements “High in Calcium and Minerals” would be the positioning strategy as

high nutritional content than other similar products in the market.
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 Targeting
Segment Target Market Strategy
Kids’ Infants and kids below 6 years Milk powder with enhanced nutritious
Nutrition facts such as vitamins, iron and minerals.

Low fat People who are heath conscious and Redesigned Lakspray Non Fat milk
need to reduce weight with dieting powder with superior taste and enhanced
purposes. calcium.
Tea Young and adult market that prefer to Two products would be developed for
Whitening drink milk tea. local and international market with a
unique taste to close them with their
traditionally preferred taste.
Supplements For senior citizens and adults above 50 New product will be developed with
years to give them additional nutrition. Calcium and other minerals
Income Lower income market that are looking for Smaller packages such as 50g,
differences budget packs. 100g,200g for different economical
classes to grab the low income market.

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Marketing Mix(4Ps)

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 Marketing Mix – Issues
Identified with “Lakspray”
 Product
 Introduced “Trim” as the only new product and remained with
the same old product with no innovation
 Price
 Price of the product is affected by distribution plan. i. e. product
is not available everywhere like Anchor or Maliban milk powder
 Place
 Zero investment in modern trade visibility (Anchor and Ratti
invest heavily on MT Gondolas
 Promotion
 No in store visibility campaigns were conducted by Lakspray
(Anchor/Raththi conducted many display drives, paid shelf
campaigns)

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BCG Metrix

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 BCG Matrix
Competitor Market share Market share

36%
32%

Anchor 36%

Raththi 32%

Maliban 13% 13% 12%

Highland 12%
3% 2%
Palwatte 3%
ANCHOR RATHTHI MALIBAN HIGHLAND PALWATTE OTHERS
Others 2% Market share

Lakspray

Source : http://www.fao.org Group-Oracle

 BCG Matrix
 Growth rate
2012 2013 2014 2015 2016 2017

Revenue 3.4 3.7 2.4 1.9 2.3 2.0

Growth rate
8.82 % -38.24% -14.71% 11.76 -8.82%

Growth Rate
20.00
10.00
-
2012 2013 2014 2015 2016 2017
(10.00)
(20.00)
(30.00)
(40.00)
(50.00)

Source : 2012 – 2017 Annual

Group-Oracle 20
reports
Porter’s Five Forces

Group-Oracle 21
 Porter’s Five Forces

1. Bargaining power of customers

High Pressure

2. Bargaining power of suppliers

High Pressure
 Porter’s Five Forces
3. Threats of new entrance
High Pressure

4. Threats of substitutes
Medium Pressure

5. Competitive rivalry within an industry

High Pressure
Value Chain Analysis

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 Ansoff Matrix
Ansoff Matrix at current Level

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 Suggested Ansoff for New BDP

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Recommendations

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