Evaluate the prospects for a successful joint venture between Paal-Dairy and Goodman Fielder.

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Evaluate the prospects for a successful joint venture between Paal-Dairy and Goodman Fielder. Market potential The market potential mostly comes from a growing demand of dairy products in India. It was supported by those economic factors such as income growth and population growth (especially the main target segment – middle class income ). In addition, the fresh milk limitations and defects give the opportunity for UHT milk development. The product life cycle of fresh milk market already at a mature stage in contrast UHT milk was just at an introduction stage. In addition the demand for UHT milk was forecast to duble in the first year of introduction, and then to quadruple every year thereafter over the three years planning horizon of Paal-Dairy. Therefore the market potential for UHT milk is tremendous. The Growth of Paal-Dairy Paal-Dairy was established 6 years previously to take advantage of the growing demand for dairy product in India. Form the table 3.2, it shows a good growth of Paal-Dairy. During the operation in India, Paal-Dairy already had a good reputation in the dairy products industry. Moreover, they have well defined their target customer the middle class people. Paal-Dairy well understood the local consumer buying behaviour and taste preferences. Although give sufficient time that Paal-Dairy would be able to develop the UHT capability. They were more worry about the pre-emptive entry by a local competitor. And now, Paal-Dairy was looking for local growth opportunities through the establishment of an UHT facility. That’s why Rajiv Velu wanted to through internationalization of his company then capture a more rapid growth by forming a joint venture with some international well-know company. Paal-Dairy’s Considerations of forming a joint venture 1. Seek-out a partner that currently exported branded products to India, and so already had

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