Business Finance
Arla Foods Company Marketing Principles Paper

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Arla Foods Company

By (Name)

Institutional Affiliation
City and State


Arla Foods Company


There are very many companies all over the world, each one of them dealing with
different categories of products such as food/beverages, pharmaceutical /health products. Arla
Foods Company is a company located in the United Kingdom that deals explicitly with the
production of milk products. It dates back to the 19th century when it was first established, and its
headquarters are located in Denmark (Mordhorst, 2013). The company has passionate farmers
who are well skilled and produce large quantities of dairy products and high quality. The highquality products that are produced by the company result in more sales since they have
bargaining power in the market. The company uses new trends in the dairy farming sector, such
as maintaining the welfare of the farmers and the animals in a bid to ensure continued profits.
The company has been earning huge profits. It is also important to note that the company's
revenues have been increasing significantly in the past years (Tauber Wiese and Nørfelt Lund,
2020). Leading dairy cooperative Arla Foods amba returns all profits to farmers as revenues
grow actively in the UK with consumers favoring nutrition, health and sustainability. Due to this,
all the profits are usually returned to the farmer at times.
The paper takes a look at various aspects of the company such as factors in the micro and
macro environments that affect it, the target audience of the company's products, location of the
company, corporate and social responsibility of the company and recommendations that once
applied will improve the company performance and success.
Microenvironment Factors That Are Likely to Affect the Company in the Next 12 Months
Every company has factors that either promote or slow down its growth. These factors
constitute the micro and macro-environments. These factors are significant milestones in
ensuring that the company grows continuously without collapse. Some of these micro-

Arla Foods Company


environment factors include employees, competitors, media, shareholders, suppliers and
customers, among others.
1. Customers
These are very critical in any business success. They have a direct influence on the companies'
revenue, and hence companies should take measures that ensure customer fulfilment
(Kokemullar, 2020). Arla Foods Company can increase its revenue in the next three months by
attracting new customers and also retaining the already existing ones. It can do this by ensuring
that high-quality dairy products are in constant supply in the market. In this way, the revenue
levels of the company will be growing significantly over the years.
2. Competitors
Competition among companies is a ubiquitous thing in the market, and it has a direct influence
on the companies' revenues and profits growth. Every company should aim at looking at ways in
which their competitors brand their products, their qualities and also their pricing methodologies.
In this way, companies can have bargaining power in the market (Farooq, 2020). Arla Foods
Company can increase its bargaining power in the market and also its sales by considering
factors such as the marketing strategies of their competing firms to be able to compete with them
3. Employees
These are significant people that ensure success in the business. For a business to succeed, it
should have highly skilled employees. The experienced employees will, therefore, produce highquality products that will be favourable and preferable to the customers (Pratap, 2020). Arla
Foods Company should high highly skilled farmers. It will ensure the production of high-quality
products, thereby leading to an increase in the company's profits and revenues.

Arla Foods Company


4. Suppliers
Their influence is excellent in the success of any business. They supply the raw materials to
companies and even the final products to the market. For a company to succeed, it should have
suppliers who deliver raw materials and also the final products as fast as possible (Pratap, 2020).
Arla Foods Company should employ more and timely suppliers to ensure that they make more

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