Analysis the market environment of Dairy crest Essay

Analysis the market environment of Dairy crest - Essay Example Government use the following methods to support dairy industry: In spite of the fact that dairy industry operates in friendly environment, it has been facing some legal hurdles. For example, dairy makers could not under the law of the United Kingdom assert that their products could treat or prevent diseases, however could claim that their products had some useful benefits once the evidence to this effect had been provided. Economic factors. Dairy industry of the UK is highly competitive. The UK is the third producer of milk in Europe. There are several large purchasers of milk on the market, and Dairy Crest is one of them. British economy is growing at the rate of 3% and there is strong demand on health food products; however dairy industry and Dairy Crest in particular suffers from several unfavorable economic factors: Social factors. Social factors are one of the most important factors in the development of marketing strategy of Dairy Crest. British population is more health conscious, and Dairy Crest has already been trying to adapt itself to this trend by launching new updated version of its diary product St Ivel Gold and Clever Milk, both are enriched with beneficial oils. So far the expansion into health-food market has been successful; the company claims that the growth in this niche of the market has been more than three times higher than in the market of usual dairy products. UK has ageing population and it might not be an encouraging news for the producers of some of the dairy products, such as milk; however if the industry manages to produce more health-beneficial products, especially those that can help cure or prevent age-related illnesses, the ageing factor might be an advantage . Technological factors. One might not expect some revolutionary technological innovations on the market, however taking into account the fact that demand on the health food has been growing steadily, one can expect the rising in the expenditures on the R&D to produce more beneficial diary products.