The Kuwaiti Danish Dairy Company has gone from strength to strength since its first daily 2,000 liters production of pastured milk and yoghurt at its Sheikh plant in 1962. Its core production is at a most 34,000 sq. Meters recombining dairy plant at Sabbath, the largest and the most technically sophisticated in the Middle East. KID has modern and fully-equipped laboratories at all its manufacturing facilities with qualified fully-trained laboratory technicians conducting the analysis of all raw materials, as well as final products.
Through extensive testing – physical, chemical, astrological – all materials used in the manufacturing process as well as the products released to the market are aligned with national and international standards and conform with Kid’s even stricter standards. Objectives: Learning points from this project are: KID is an established local company with a history of accomplishments. Overcoming economical obstacles with leadership and management. Managing to establish a well-recognized brand both nationally and internationally. Dealing with legal issues and meeting the people needs. The cooperative environment: Examples of opportunities:
KID Company had it chief of staff supervised by Kuwaiti chairman rather than a Danish supervisor, preserving it local authenticity as a genuine Kuwaiti product. KID increased their products in all cooperative around Kuwait as well as internationally “gulf region”, by advertising and expanding shelf spaces. Over the past years KID Company have though of a new image for their products making it more attractive visually to buyers. (1) Examples of threats: KID Company had to switch management in their early years as an independent company, which threatened manufacture production with less experience staff. (l)
KID had a limited product in their early years, which needed to be updated as market computation increased. KID had limited marketing facilities since it was the only product in Kuwait, which then decreased in sales after flooding the cooperative of regional products. The competitive environment: KID offers low wholesale prices, and low market price, which attracts consumers from other competitive products. KID have a home delivery offers lower than market price in the comfort of the customer homes. (1) Occupying better shelf spaces and location, which decreases competitor products, with a faster and easier access to
KID product. Threats examples: Equal competitor quality with similar values, in addition of more various products. Lack of governmental support to local products, for example have no tax on foreign products, which makes it easy for other company to overwhelm our markets with their own products. Having other companies lower their prices more, which makes it difficult for KID to have it in similar price with such high quality demands. The economic environment: KID Company has increased their products, expanding from their classic Juices flavor into more seasonal varieties with slight increase of prices.
Decrease packaging expenses with more efficient less expensive appearance, for example the size and shape of package, which increases the quantities on the shelf. Decrease worker numbers in the factory, with new efficient machines, thus increasing standers of quality and efficiency of delivery. Threats example: During the economical crisis, KID had to faced decrease in their products sales due to high prices, specially the new products, which had some reduction in sales. Incidence of factory burn in 2008, KID had to face reduction in the market.
Thus eating a decrease in consumer demands, with increase demand on foreign products. (4) Expensive new products lead to decrease in trust from the retailers. (3) The social environment: KID is the most known brand of dairy products and Juices in Kuwait, although there are many other competitions in the market, however Kuwaiti families still relay mostly on such product. (l) KID is the number one brand in Kuwait, representing the true meaning of Kuwaiti values and quality. KID has many eventful verities; with every social event the company made sure that it leaves it fingerprint on the consumers. ) Threats example: Lack of consumer supports to the products due to overwhelming other products in the market. High foreign competition socially and financially from regional products. Lack of newer idea for events and social advertisement. The political environment: KID had the upper hand in reliability after the custom crisis in Kuwait in 2011, which prevented many regional and foreign companies to enter Kuwaiti borders or delay them which lead to expiration of most of their fresh dairy products. KID had advantage in supplying cooperatives and markets, in economical crisis, which creased the amount of production in other countries.
KID is a local company it has no political threats in a well steady economical country, on the other hand foreign products are deeply relayed on their regional economy. Threats examples: Regional crisis from surrounding countries, due to political conflicts. KID had to face a major remission during the early ass’s due to Kuwaiti political instability, which lead to major set back for such company. KID had a major set back as well due to religious conflict in 2006, due to it relation to Danish government, thus had to be learned from the chairman of the company in order to gain the people trust. 5) The legal environment: KID has the full support of the government, thus it is the most trusted company in Kuwait. KID has sufficient customer policy and right, which helps distributing it products. KID has stable prices to limit the regional computation. (2) Threats examples: In 2012 with increase of products prices with out consulting the cooperative chairman, thus lead to rejecting their products, and having their shelves emptied. KID as a company has to stay stable with their prices, since it is government related, hush cannot increase their profits.
KID is a local company, which commit it to have similar prices in all regions, with the lower price in it original country. Conclusion Looking at all this information, it makes it obvious that KID is most successful company in Kuwait, not only in business, but also as a great product with high quality. The persistence of KID makes it a leading company both locally and nationwide. KID has successfully managed to deliver the highest quality for over 60 years in Kuwait, it is a truly trust worthy company, which is closer to every family both inside and outside Kuwait.