The Saudi and Dairy Foodstuff Co

For over twenty years, SADAFCO has consistently enjoyed great success in producing and marketing dairy products and other food items in Saudi Arabia as well as to neighboring countries in the region. Its products are known for their excellent quality, better taste, and reasonable price. But despite the long history of success and positive brand recognition from consumers, SADAFCO is experiencing declining market share and market losses due to increasing competition. The competition is not only coming from local companies but also from multinational companies like Nestle, Unilever, and Mars. In the past, these multinational companies were not perceived to be a major threat to SADAFCO's market position because their products were usually priced higher than the local products and that they were not readily available to the consumers. However, recent aggressive marketing push from these companies has narrowed the price gap and has given greater visibility to their products. More importantly, these multinational companies are doing an excellent job in securing shelf spaces in many supermarkets which further gives their products more exposure to potential consumers. As a result, SADAFCO is losing significant market share from the severe competition and is facing the possibility of market losses. It has thus become apparent that for SADAFCO to regain its market share and to remain profitable, it must now adopt initiatives and better marketing strategies to increase consumer awareness for its products in order to drive up sales. In addition, it may be necessary for SADAFCO to overhaul its product lineup and consider producing and marketing only food items that are popular and profitable to the company.