Benchmarking (Dean food VS Mengniu)

Introduction
China Mengniu Dairy Company Limited and its subsidiaries manufacture and distribute quality dairy
products in China. It is one of the leading dairy product manufacturers in China, with
MENGNIU as the core brand. The Group boasts a diverse product range including liquid
milk products, ice cream, and other dairy products. Mengniu is ranked the 19th in the 2009
global dairy company list, the first time a Chinese dairy company made it among the top 20.
Liquid milk product: revenue 3,498million USD in 2009 (2,241 million USD in 2008), 88.4%
of total revenue.
Mengniu is committed to implementing the guiding Concept of“Eco-friendly, Green,
Environmental Protection and Recyclable Development” through every step of the
dairy production chain, providing a good role model for the industry.
(Dean Foods: similar size, similar product, similar business structure, but different business
model.)

 Branding and introducing new products (Dean food: WhiteWave-Morningstars, silk soy
milk, Organic milk)
High quality: 1.“Nutritional set 6+1” series through integration of the six daily nutrients including
dietary fiber and vitamins that the human body requires.
2. “Xin Yang Dao” series developed to aid digestion and intestinal absorption, Low fat, and
low-loctose.
3. “Future stars” series for very young children for the earliest stage of development.
High enjoyment:1.Perfectly integrates pure fruit juice, vegetable juice and fresh milk in a
delicious combination and introduces a variety of tasty flavors.
2. Children’s milk beverages, featuring “More Delicious than Milk, More Nutritious than
Beverages”
3. Through a series of charity marketing and experiential promotion activities such as
“Champion Digestive System Care Action”, which aroused awareness of intestinal
health and advanced the concept of “Doing Spa for the Intestines”
High end: 1. The Deluxe, high-end product series.
2. The Red Jujube Yogurt launched by the Group, by incorporating traditional Chinese health
concepts, Group aims to develop a Chinese Nourishment series guided by the
concept of “Good Nourishment, Good Complexion”
3. Grain Yogurt, targeting the young white-collar and middle-class families, which blends the
nutrition and taste of grain and milk, is set to become a new high-end nutritious
grain replacement for conventional meals.
 Branding company (Dean food label Vs Wal-Mart private label)
1. Group launched the “Mengniu 360° Panoramic View Website”where consumers and all
sectors of the society can employ high technology to explore Mengniu Industry
Workshop and the operating procedures in every work area online and to better
understand Mengniu’s modern production bases.
2. The Group cooperates with a variety of sectors including banks, hotels, theatres, fast-
food chains, airlines, gas stations and railways. Most notably, the Group has entered
into a collaboration agreement with the China Space Foundation, achieving the
 enviable position as the enterprise providing Products Exclusively for China’s Space
Program for seven successive years.
 Quality Control (Dean food: low cost -> low quality)
1. During the year, the Group has been adhering to strict quality control standards, and is
committed to establishing and maintaining a long-term and comprehensive
manufacturing control system.
2. The Group’s quality control measures have obtained certifications from five key safety
regimes. (ISO9001 (quality management system), ISO14000 (environment management
system), OHSAS18001 (occupational health and safety management system), and GMP
and HACCP (food safety control system).
 R & D (Dean food: Nothing)
1. R&D centre with the objective of creating the “Silicon Valley of Dairy Products” through
combining the strengths of 16 dairy R&D institutions around the world.
2. Providing dairy farmers with technical services and management support on an on-
going basis through the Mengniu Service Centre for Designated Collection Facilities.
 Outlook (Dean Food: cut cost)
1. Emphasis on R&D to develop high-end healthy dairy products while producing green,
natural and high-quality products to guide the market trend, the Group will further
attain a competitive edge in milk sources.
2. Promote Standardizations of Ranches for Advantages in Milk Sources. monitoring and
guidance on raw milk production, and adopt a number of measures, including training
on modern breeding technologies, to ensure quality and safety of raw milk.