Related Diversification Using Core Competencies in South Korean Dairy Industry

This study aims to examine how unrelated diversification facilitate firm’s growth and innovation. To achieve this goal, we investigate how Maeil Dairies has diversified through open innovation as the Korean dairy market struggles to maintain its size. Maeil Dairies, one of the top three conglomerates in the Korean dairy industry, has gone through different forms of diversification both related and unrelated to its core competencies. This study presents what the overlapping competencies are in its diversified products and businesses, analyzes the effectiveness of diversification in terms of relatedness, and examines the need for unrelated diversification. By analyzing the four diversification categories of the Maeil Dairies case and applying diversification theory, this study shows that although related diversification is more recommendable in most circumstances, unrelated diversification may present new opportunities and is necessary in order to avoid stagnation and falling behind.

CURRENT TRENDS OF DAIRY MARKET DEVELOPMENT

The conducted research testifies to the significant influence of modern events on the dairy market development both in Ukraine and in the whole world. In the dairy industry of Ukraine, there is a significant crisis deepening: there is a tendency to reduce the number of cows and, consequently, reduce the raw milk production. Key indicators of the dairy industry continue to decline. The article covers the main modern market’s tendencies of dairy products development. The most important among them are: a significant increase in the weighted average price of raw materials for the dairy industry – raw milk; reduction of dairy products sales in general in small packages; increase in butter and hard cheeses consumption and gradual decrease in drinking milk consumption, fermented products, dairy drinks, as well as soft cheeses (cottage cheese); changing the range of desserts from drinking versions to versions of spoons, flavors, types of additives and forms of packaging; the use of cereal ingredients, crispy, muesli, which will play the role of a healthy snack; increasing consumption of healthy foods that increase resistance to disease; acquisition of lactose-free products’ new value; development of alternative plant-based products; growth of services via the Internet; increasing the role of "clean" label; introduction of new products and tastes that are especially appreciated by consumers; growing interest in long-ripening cheeses; sales growth in the "free from" segment; development of the natural yogurt market; special attention to the preferences of the elderly; the desire for more complex, interactive and green packaging of dairy products with additional features. Despite the deepening crisis in the dairy industry, the widespread introduction of various marketing tools, the introduction of innovations with an emphasis on organic dairy products, whose market is growing every year, will not only keep sales at the previous level, but while taking advantage of new dairy products’ consumer needs and new opportunities, redistribute income and expand the economic activity of dairy enterprises. And the adoption of Law № 6155 is a significant factor in improving the economic situation of food producers, establishing a fair distribution of value added in the producer-processor-consumer chain, ensuring food security and taking into account changes that comply with EU directives.

To analyze the latest situation in the Russian dairy market

In article the complex assessment of the market of milk and molokoprodukt including allocation of positive and negative trends of development is given. The analysis of a condition of the dairy industry it was carried out according to Rosstat and FCS. The author considers that decrease in consumption against the background of the stagnating income of households, and with another — rather strong differentiation on extent of saturation is characteristic of the dairy market. The pursued protectionist agrarian policy provides to domestic agricultural producers of preference, providing development of the dairy industry. However, growth rates are insufficient. For fundamental change of a situation in the industry it is necessary to expand the list of restrictive measures and also to apply the measures of state regulation focused on increase in productivity of work, implementation of innovative technologies, ensuring the principles of the healthy competition, etc.

MECHANISMS OF FORMATION OF REPRODUCTION LOGISTICS OF THE MILK AND DAIRY PRODUCTS MARKET IN UKRAINE

Topicality. The task of improving the efficiency of the dairy market, as one of the strategic markets of Ukraine, necessitates solving many problems of its development, in particular, reducing the raw material base, unbalancing relations between entities, reducing the quality of dairy products, increasing imports and more. The main direction of solving the problems is to ensure equal conditions for the participation of small and medium producers in the reproduction process by creating multifunctional dairy cooperatives with a complete cycle of dairy products. Aim and tasks. The purpose of the article is to substantiate the components of the organizational and economic mechanism of formation of reproduction logistics of the dairy market, focused on ensuring equal conditions for the movement of dairy products between small, medium and large market participants on the basis of priority state support for multifunctional dairy cooperatives with the completed reproduction cycle of product traffic. During the research the following methods were used: dialectical, theoretical generalization and comparison, graphical, structural-logical method. Research results. Ensuring equal conditions for the participation of small and medium-sized producers in the reproduction process of the market is possible only through the in-depth transformation of existing mechanisms and organizational and legal forms of milk production on the basis of their priority state support. The proposed structural model of multifunctional dairy cooperatives compared to the traditional structure of existing cooperatives provides for the presence of its own raw material base for milk production, its own processing facilities, its own distribution channels and sales of finished dairy products through the cooperative retail network. Conclusion. The introduction of the proposed number of levers and tools for the formation of multifunctional dairy cooperatives involves improving the institutional support of this process. This necessitates the priority development of relevant laws and regulations that will help improve the efficiency of small and medium-sized dairy markets. The scientific novelty of the study lies in the theoretical substantiation of the organizational and economic mechanism of formation of reproduction logistics of the dairy market of Ukraine, the development of a differentiated approach to supporting the raw materials of the dairy market depending on the level of dairy farming in the regional dimension. The applied significance of the obtained results is determined by the possibility of their use by different institutions in the process of substantiation of measures and tools of dairy market regulation at the national, regional and local levels.

RUSSIAN DAIRY MARKET: SPECIFICS AND DEVELOPMENT PROBLEMS

Цель статьи - исследование специфики формирования, оценка современного состояния и выявление системных проблем развития российского рынка молочной продукции в условиях антироссийских санкций и ускоренного импортозамещения. Научная новизна: рассматриваются сущность, функционально-отраслевая структура и особенности функционирования молочного подкомплекса АПК. Выполнен комплексный анализ траектории развития и дана оценка конъюнктуры российского рынка молочной продукции в разрезе видовой структуры, обобщены характерные черты и актуальные проблемы его функционирования в условиях глобализации экономики. The purpose of the article is to study the specifics of the formation, assess the current state and identify systemic problems of the development of the Russian dairy market in the conditions of anti-Russian sanctions and accelerated import substitution. The scientific novelty lies in considering the essence, functional and industrial structure and features of the operation of the dairy subcomplex of the APC. The author has carried out a comprehensive analysis of the development trajectory, has investigated an assessment of the situation of the Russian dairy market in the context of the species structure as well as characteristics and current problems of its functioning in the globalized economy.

Consumers’ attitudes towards functional dairy market in Croatia - a cross-sectional study

Modern consumers ask for foods that have beneficial effects beyond the traditionally known nutritional role. This is the core definition of functional foods, however, many consumers are confused with what functionality represents. Milk and dairy products stand out as the largest segment of functional foods. Given the diversity of Croatia’s functional dairy market, the aim of this study was to conduct market analysis and to analyse whether consumers’ attitudes towards functional foods in general, and specifically functional dairy products, changed throughout years (by comparing year 2011/12 to 2019). Market analysis was done according to the standardized methodology while for consumer’s attitudes an online, study-specific questionnaire was used. The same questionnaire was used for both study years. Total of 231 participants in 2011/12 and 221 in 2019 completed the questionnaire. In comparison to 2011/12, statistically less people are buying functional foods (44.3 % in 2019 vs 63.5 % in 2011/12, p=0.026) but the awareness improved over time, especially regarding probiotics. Within eight years, two new growing categories of functional dairy were identified; yoghurt with chia seeds and high-protein products, while the range of lactose-free products bloomed. Cross-sectional analysis showed that the only consistent independent indicator of consumer’s decision to buy a functional over a regular product is the self-care for health, which increases the likelihood by 50.2 %. Unlike eight years ago, pre-existence of a medical condition increases the likelihood to buy a lactose-free product (by 47.4 %), regardless of what the medical condition is. Despite some positive shifts observed, general awareness of what functionality represents and what is the intended purpose of a product is fragmentary. Our findings support the need for stronger, specifically targeted evidence-based communication towards the consumers.