Executive Summery

Iran's population has increased quickly since 1979, and half of the country's citizens are currently under
35. Additionally, around two-thirds of the population currently resides in cities. These changes—toward a
youthful, urban population—often denote a shift in a nation's food consumption habits toward more
packaged, processed, and simple-to-prepare meals, as well as animal goods (meat and dairy). For the
distribution and food businesses to be able to provide the urban population with the goods they require,
this necessitates more coordination throughout the whole production chain.

For the time being, bazaars and small food stores continue to rule the home market
(Euromonitor, 2015). Despite the emergence of grocery chains in metropolitan areas, there are no
global chains because of the limits on foreign investment. Packaged and processed goods are
said to have significant development potential. For instance, cheese consumption has increased
in recent years, according to Euromonitor (2015), and this trend is anticipated to continue, just as
it has for yoghurt and other sweets. However, it should be underlined that the basis for this
anticipated increase is still limited and susceptible to the effects of governmental policy. Regard
the consumption of liquid milk, which fell in 2015 as a result of the government's 2014 decision
to end milk subsidies.
In 1991, the Kalleh Company brand was created with the intention of enhancing the Iranian food
supply. According to Euromonitor, Kalleh Company is a well-known and exceptional brand that
has ranked 48th in the global food sector for seven consecutive years as the greatest exporter of
dairy products from Iran. Kalleh Company started its activity with a daily intake of 3 litres of
milk, and today it has more than 2,500 tonnes of milk per day, which generates more than 2,650
tonnes of dairy products per day. The company should escalate its market share by diversifying
its production with different flavours and products. In Iran, Mihan, Pegah and Damdaran give
strong competition to Kalleh Company, and the company should create more opportunity to
spend more on producing new products to gain more market share.
Company Background
In 1991, the Kalleh brand was founded with the goal of strengthening the Iranian food basket.
The culmination of efforts carried out in this series throughout the last few years, all focused
towards boosting fellow Iranians' food baskets and Iran's renown. According to Euromonitor,
Kalleh Company is the 48th most popular food brand in the world, a popular and excellent brand,
and the best firm in exporting dairy goods in Iran for seven years.
Kalleh products factory is one of the largest dairy products factories in the Middle East with
receiving over 2,500 tons of milk per day. Kalleh Company possesses more than 30 branches in
Iraq, UAE, USA, Germany, England and Russia which facilitate its exports and supply chain
management.

Why Iran
As a country rich in natural resources, Iran offers innovative manufacturing prospects in a
variety of industries. Iran has the world's second largest natural gas reserves and third largest oil
reserves. Hence, the government encourages people to produce in a variety of sectors by
providing infrastructure; besides, the fundamental purpose of this company's development in Iran
has been to meet a portion of society's requirement for everyday raw materials.

Mission, Vision and Values

Mission: To give consumers a range of high-quality food options while fostering innovation and
employment.

Vision
 Creating Global Brands

In order to make this Iranian brand well-known around the world, The Kalleh Company
aims to build a strong and cohesive group that is founded on a solid and knowledge-based
infrastructure, utilising elite and skilled labour as well as the best gear available. They think
the business is capable of competing with the best firms in the world in this industry.
 Dominating MENA and CIS Markets

Being "first and best" in the CIS and MENA areas has been the foundation of The Kalleh
Company's business strategy. They are certain that their carefully thought-out strategies,
effective use of personnel, and specialised knowledge will enable them to excel in this
industry.
 Improving Iranians“ Life Standards

The Kalleh Company's aim includes enhancing Iranians' quality of life. They contend that
the export of goods of higher quality might increase the flow of foreign cash into the nation,
boosting the economic cycle and raising citizens' standards of living.
Values: The Kalleh Company places a strong emphasis on enhancing wellness, innovation, and
customer happiness through its products and in the minds of employees through its corporate
culture.
Competitive Analysis, Market Share
Pegah Company, as the biggest competitor of Kalleh Company in dairy products, stablished the
largest dairy powder factory in Iran in Lorestan Province in the west of the country. The
company has 17 production facilities and five distribution companies throughout the country. It
produces a range of dairy products, including cheese, milk, cream, and yoghurt.
Mahdi Hajibegi, International Affairs Manager at Iran Dairy Industries Co., noted Pegah is
leading in market share with 21% and Kalleh is close behind it with 16%. Also, he followed
Mihan with 11% and Damdaran with 10%.

Kalleh Company Competitive Advantages

Packaging
Packaging is an integral aspect of marketing strategy and plays a vital role in selling products
and services. A nice packaging attracts more consumers and boosts people's propensity to buy
things. Because of a growth in consumer affluence, customers are now subjected to a plethora of
demands. Producers must also make suitable modifications to their strategy in order to fulfil the
needs of their consumers and compete with new rivals. Product innovation is an essential aspect
in increasing efficiency and effectiveness (Noorani & Setty, 2007). One of the most significant
tactics for increasing the effectiveness of commercial strategy is packaging. Packaging is
important in product development since it is a component of the product and may influence the
features of all products (Olsson et al., 2004).
Kalleh Company's elegant and contemporary packaging provides a significant competitive edge
over competitors. People are curious about how different meals taste throughout the world. They
recognise other nations based on their landmarks. The major concept for designing the packages
was to illustrate a combination of the texture and quality of the actual product with iconic sights
of their native country.
Product Differntation

On the other hand, Kalleh Company has created a lot of competition in the dairy industry by
producing dairy products with different flavours for different tastes. The dairy industry is facing
intense competition (Karanja, 2003). Consequently, dairy companies may increase their
competitive advantage through product diversification.
Previously, there was only one type of cheese available in Iran, known as Iranian UF cheese, and
it was classified as soft cheese, which is the lowest quality cheese in the world in terms of
protein content, according to Euromonitor International definitions, but innovations by some key
manufacturers changed this situation and gave consumers the opportunity to buy many other
types of cheese such as cream cheese, processed cheese, and cheese with additional flavors like
walnut This aided the overall category's quick rise at the end of the assessment period.
Kalleh Dairy Co., presently sells five different varieties of cheese: Amol cheese, cream cheese,
fresh cheese, pizza cheese, and natural cheese. Amol cheese is mainly produced in the Kalleh
factory in Amol and consists of attractive products flavored with walnut and caraway and
Lighvan cheese, which proves very popular, especially among younger consumers. Its range of
fresh cheese includes cottage cheese, village cheese (mahall) and rio cheese, while its natural
cheeses include blue cheese, Butterkäse, Gouda, Parmesan, Prato, camembert, Esrom and
halloumi.
Kalleh Dairy Co uses 2,500 tonnes of milk from 160 farms to produce a variety of dairy
products. Milk is priced based on its quality in their system, ensuring that both producers and
consumers are fairly rewarded. Kalleh Dairy Co offers a wide range of milk-based products with
different fat levels and flavors, such as fruit-flavored milk, coffee milk, almond milk and other
flavors.
Set yogurt or the traditional Iranian yogurt, is also known as Balkan yogurt in the world. To
prepare this type of yogurt, cow's milk is first heated and after that, yogurt is added to it, and by
keeping it in a suitable space, the milk and yogurt added in two stages are kept warm and
refrigerated, and finally it is closed in the form of a container.
Kalleh Dairy Co was the first to create stirred yogurt, a product that boosted the size of the
yoghurt market due to its presence on the market and, with more than 30% market share,
influenced the majority of consumers to prefer this type of yogurt compared with Set yogurt.
This yoghurt is entirely mixed during the manufacturing process, which prevents the yoghurt
from becoming two-phase and watery.

Strengths Weaknesses Opportunities Threats

High quality of products A wide of range of options The extent of society’s Sanction
age pyramid

Variety of products and Ineffective environmental Banning the import of Inflation

new packaging advertising dairy products and
supporting exports in
Iran
 Having high technology Insufficient staff motivation The ability to pack items Market entry of new and
financial power in accordance to green powerful rivals
industry standards
Having market research Using traditional methods of The culture of using Rate of exchange
getting feedback from the dietary products
market and customers
Being leader in the Weak network infrastructure Consumption per capita Importing raw materials
industry in exporting to to transfer data between is increasing from other countries
16 countries departments
The factory’s position in Long-organised hierarchy Participation in exhibits, Competitors’ extensive
one of the main milk both domestic and advertising
supply area foreign

Target Customer

Kalleh Company's target customers include different generations. The company manufactures
products with traditional flavours for older generations as well as new flavours for young people
and athletes. Also, it focuses on people who are health-conscious and avoid lactose.

Branding

Positioning