The betterment of a company is extremely vital and it purely depends of the functioning of the firm and how well the firm knows it’s strengths and weaknesses. As seen in the article, “Kwality Q3 net up 12% at Rs 36.12 crore“, a few months ago, the well-known dairy firm Kwality Ltd. reported an increase in their net profit for the previous quarter. Statistics show that there was an increase in the net profit by around 12 percent, as well as net sales. The Executive Director of Kwality, meantioned that they used key strategic initiatives to enhance growth. He also mentions market penetration, which means that Kwality has existing products in an existing market and they are essentially focusing on enhancement.
Clearly, over the past few years, the entry of numerous competitive brands into the Dairy market has been high. Some of the major competitors include Häagen-Dazs and London Dairy, which are multinational brands, causing the demand for ice cream of Kwality to be inconsistent. Amul, the dairy firm is the largest competitor for Kwality in terms of the customer loyalty. However, we see that they have focused on the initiatives to enhance the growth. Market penetration has been mentioned and a few market penetration strategies that Kwality could have incorporated are setting low prices in order to attract customers from all competitors. There have been mentions about new products being incorporated though improved R&D.. This could further boost Kwality’s profits over time as they have done their market research which helps them get a better picture of their target market. It also includes a good brand image through reinforcing advertisement to emphasize their brand existence in the market. Market development and Product development are a good start for Kwality to broaden their market share in the long run.
