Sitting here somewhere in Asia, I sent a text to my wife to bring home some milk with her. Surprise, surprise she came home with Devondale full cream milk.
She picked it up from one of the local franchises of a national chain of pharmacies. It cost $2AUD. We'd normally get the Nestle NZ UHT milk for about $2.20AUD.
I suppose its an interesting marketing angle. It gets national exposure through what passes as a health food store ... and it's cheaper than the most popular brand. I went to the supermarket today and its still not shelved there but then they're not part of a large chain. Australian dairy only makes a show there with Bega cheeses.
How do you market a product in a new country. What's your calling card? What's your elevator sales pitch?
"Oh your brand beat Bega out of a major private supply contract with one of Australia's largest supermarkets AND you're the largest dairy processor in Oz."
Sends the right signal to me.
The Oz supermarket duopoly began the $1 milk as a loss leader. Could it be that Hellou entered into the 10 year Coles contract for similar purposes?
Market penetration
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