The Natural 1st Choice Dairy Company
An Arla Foods case study

Page 1: Introduction

Responding to change in the business environment is challenging, particularly for large organisations. The business environment provides both opportunities and threats to the long-term success of an organisation. Therefore, for an organisation to develop well strategically, a range of important, but well defined decisions have to be taken. The organisation must decide how to allocate its resources...
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Page 2: Arla Foods

Arla Foods has its origins in a co-operative of 17,000 farmers founded as Anmark in Denmark during the early 1970s. As a co-operative, the farmers banded together to negotiate with retailers who it sold to, and agriculture suppliers it bought from.As it grew, it did business outside of Denmark as MD Foods and later merged with a Swedish producer to form Arla Foods the largest dairy group in...
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Page 3: Developing a values-driven culture

Arla has grown by bringing together a number of different UK dairy sites. Each of these dairies had its own conditions and practices but no distinct Arla culture, direction or purpose. It is important for all organisations to have astatement of purpose or a vision to define their purpose. The vision must translate into a series of values which will define the company in the market place.An...
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Page 4: The Arla Advantage

Three key values within the Arla Advantage programme were designed to transform the culture of the organisation. These were:The people advantageArla had to be perceived by its employees as 'a great place to work' In order to do this, it was important to build an open environment in which news (both good and bad) could be communicated clearly. If everybody receives the same message, and shares...
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Page 5: Values in action - Cravendale

Other than flavoured milks, there has been little innovation in the fresh milk market. For the consumer, the trigger to purchase is both need and the colour of the cap on the plastic container in the supermarket. The market is declining with a movement away from doorstep delivery towards supermarket purchase. Within a values-driven culture, there was a need to challenge existing practices and...
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Page 6: Marketing a new product

Setting up a production facility can be expensive, so it was important to undertake extensive market research before making an investment to produce balance risk and return. The marketing processes involved had to be focused upon identifying, anticipating and satisfying consumer requirements for a new milk to turn what was viewed as a commodity into a brand. At the same time the brand needed to...
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Page 7: Conclusion

By providing consumers with a different experience with some tangible product benefits, supported by a branding process, the Cravendale brand experienced rapid growth. The brand has shown that it is possible to turn a commodity into a range of specialist brands. As Arla does so, such product launches and innovations reflect the evolving values-driven culture of the organisation.
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Related: National Express
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