Mrktng Project

7/30/2019 Mrktng Project

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MISSION

NAME OF OUR COMPANY

We have chosen the name of our company CLASSIC DAIRY FOOD. The reason to

choose this name for our company is that, company will introduce a new dairy item in

every winter and summer season.

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TO MAKE THE RECOGNITION OF

OUR COUNTRY AND COMPANY IN

THE GLOBAL MARKET THROUGH

OUR INNOVATIVE AND UNIQUE

PRODUCT, OFFERED BY US INECONOMICAL PRICE CONSIDERING

THE HEALTH AND PURCHASING

POWER OF THE CONSUMERS.


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LOGO

Its our logo which wills also giving a message for our consumers. We will use this logo

style for the newly item flavored cream. Company will show its name on product in this

style.

Dairy Food

OUR THEME

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Healthy food

makes

You healthier


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Executive summary

Starting a new business is always tough. We have spent hours and hours putting our

Business plus marketing Plan together, generated versatile ideas on variety of products,

looked towards the feasibility of our ideas, consulted with experts, considered every

aspect towards finance gathering, made a plan to arrange office equipment, thought about

every aspect to start a new business.

Finally we decided to enter in the dairy product industry, With the every passing day,

dairy products are becoming more popular in Pakistan as well as in all over the world

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this we will select a location near to villages and dairy form houses where we will make

a cold milk storage house, an easy way to collect milk, and to preserve it. For this we will

make contract to our dealers and owners of dairy form houses.

I. CURRUNT MARKET SITUATION

Our customers want some thing different in their existing product so, we are introducing

a new product and provide full information of our product to the customer. We check the

feasibility of our new product through questionnaire then we prepared sample of our

flavored cream and tested it to the market and found good responses.

A. CURRENT CUSTOMER MARKET:

Market segmentation is the identification of portions of the market that are different from

the one another. Segmentation allows the business to better satisfy the potential

customers needs. After analyzing the demand of our product we have segmented

consumer markets on the basis of following consumer characteristics.

o Geographic segmentation

o Demographic segmentation

o Need based segmentation

B. COMPETITION:

Our company has a competitive edge over the Haleeb Company and Nestle because we

are the first one to produce flavored cream. Our competitors have not yet introduced

flavored cream so this is the main factor that differentiates us from our competitors. We

came to know from our primary research that most of the customers like flavored cream

especially strawberry flavor, so we have made strawberry flavored as well as other

flavors according to the needs and wants of customers.

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C. ENVIRONMENTAL FACTORS

Environmental factors are the actors that affect the target market. Following are the

environmental factors that may affect the customer acceptance and rejection of our Clint:

1. DEMOGRAPHIC ENVIRONMENT

The worlds large and highly diverse population poses both opportunities and challenges.

Our product is for every kind of age people but specially youngster and kids. We have

observed through are primary research that most of the people like cream to have in

breakfast, as a desert so we have introduced flavored cream in which we will add fruit to

make it delicious.

2. SOCIAL AND CULTURAL FACTORS

According to the cultural and social environment our product is acceptable. Now a day

its been a specialty and almost every house to make a creamy desert. All age groups

accept our product because it gives nutritions to a person who eat it. Reference groups

and all other groups accept our product because all the ingredients which we use in

making a product are Halal. It is a hundred percent Halal food.

3. ECONOMIC CONDITION

As a marketer we have paid close attention to major trends and consumer spending

patterns. Our product is priced according to the customer demand what we have come to

know through the primary research. We expect that the prices what we have set will be

favorably accepted by the customers and the product will be liked too.

4. STATE OF TECHNOLOGY

Technology effects production, packaging and distribution of product. The technological

environment makes the product more standardized and enhances its quality. This product

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seriously effect marketing, so we always make good relation with them and fulfill their

needs on time.

D. SWOT ANALYSIS SUMMARY:

SWOT analysis is a tool for auditing an organization and its environment. Its the first

stage of planning and helps marketers to focus on key issues like Strengths, Weaknesses,

Opportunities and Threats. Strengths and weaknesses are internal issues and on the

contrary Opportunities and Threats are external issues.

1. STRENGTHS:

Opportunities

Threats

Weaknesses

Strengths

SWOTAnalysis

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Opportunities

Threats

Weaknesses

Strengths

SWOTAnalysis


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Brand name

Capital

Our people our strength

Diversity of workforce

Selling Strategy

R & D department

Market share

Packaging

Customer Loyalty

Brand Positioning

2. WEAKNESSES:

Lack of technology

Labor union

Inefficient waste disposal system

Not properly deliver products feature

3. OPPORTUNITIES:

Expected to go in the global market

Enhancement of technology

Stability of governmental policies

Covering more of the market share and thus earning more

profit

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4. THREATS:

Following are the threats:

MAJOR THREATS

Threats of new entrants

Foreign investors

Imitation

Political instability

Change in import policy

Customer liking for the product

POTENTIAL THREAT:

Not properly conveying our message through advertisement.

MINOR THREATS:

Change in price of raw material

Suppliers are not supportive

II. MARKETING OBJECTIVES OF OUR COMPANY

To introduce an innovative product in the market.

To inform customers about the feature of product.

To attract new customers.

To adjust price at a level that must cover the cost of production and

generate reasonable revenue.

To consider the nature, demand and purchasing power of buyer.

To consider the standard of living of buyer.

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To reduce the extent of seasonal decline in sales.

To make it easier for sales man to serves more orders and arrange

displays in retail stores.

To createdemand for new product by attracting attention of people

towards it.

Make good relationship with suppliers and retailers.

To capture the maximum market through the want satisfying

products.

Setting the price of product in relation with competitors price.

Promoting products through the most effective medium

To meet the needs and requirements of the customer.

To make a marketing campaign in remote areas.

To use the proper channel for targeted market.

To reduce price and increasing sale volume.

Access towards people of remote areas.

To minimize the cost of production.

To take the notice of competitors cost.

iii. MARKETING STRATEGY AND ACTION PROGRAMS

Our aim is to bring innovation by adopting following strategies:

COMPETITIVE STRATEGY: want to adopt competitive business strategy; we

will attempt a sustainable competitive strategy. Our aim is to grow and maintain

the competition in the market.

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POSITION IN THE VALUE NETWORK: our aim is to identify the

competitors, complementors, and any net work effects that can be utilized to

deliver more value to the customers.

REVENUE GENERATION AND MARGINS: our aim is to develop the

strategies for sales, for the increments of profit margins.

VALUE CHAIN STRUCTURE: our aim is to develop the strategies for those

activities. That will capture part of the value that it creates in the chain.

MARKET SEGMENTS: our business aim is to identify the needs of different

markets and make planning to segments the market according to the needs of

economy.

VALUE PROPOSITION: our aim is to identify and to describe the problems of

customers and the searching of customers problems with customers perspective.

If the new product concept does not fit the companys overall marketing strategies,

serious consideration must be given to either changing the company marketing strategy or

not pushing the new product concept.

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A. MARKET SGMENTATION AND RECOMMENDED TARGET

MARKET:

We are segmented the market on different basis like demographic basis to see their

income patterns and need based segment to fulfill their needs and geographical basis.

1. MARKET SEGMENTATION

Market segmentation is the identification of portions of the market that are different from

the one another. Segmentation allows the business to better satisfy the potential

customers needs. After analyzing the demand of our product we have segmented

consumer markets on the basis of following consumer characteristics.

DEMOGRAPHIC SEGMENTATION (Age)

On the basis of demographic segmentation we have made this product for every age of

people.

From children youngsters

From youngsters old people

Every one likes to eat cream. Either she is female or he is male.

INCOME: In case of income level, we will adjust our price of every cream pack that will

affordable to every income group, either some one is from lower, middle upper class.

GEOGRAPHIC SEGMENTATION

Initially we have decided to segment the market on the basis of regions because we have

analyzed the demand of our product in FJWU.

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NEED BASED SEGMENTATION:

As our segment market will contain people from every class, male and female, and from

young to old. Cream is liked by every person. We analyzed the demand and taste of our

customers and offered them an innovative cream with different flavors. In this way we

made need based segmentation.

SEGMENT ATTRACTIVENESS:

As we have seen in the market there are some companies like nestle introduced their

favored milk and yogurt in the market but not in flavored cream so this new feature in

cream will make attraction in our segment.

So market growth is possible, access to the market is also possible as now people are

becoming more conscious towards their health and they like dairy products for balanced

diet.

2. TARGET MARKET

Doing business without knowing what our target market will prevent us from reaching

our objectives: increased sales, market share or brand awareness. There are five different

types of marketing strategies as given below:

Single segment strategy

Selective segment specialization

Product specialization

Market specialization

Full market coverage

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From the above strategies for target market, we have adopted a product specialization

strategy, because we are offering our product in FJWU because we have segmented our

market on the basis ofgeographically.

Our target customers will include Individual customers and businessmen. Individual will

include both

Male

Female

(Children, youngsters, and old people)

B. SEGMENT POSITIONING:

Our product has numerable feature. It will give not only fruity flavors but also will give

our body a balance diet. It will also give nutritious and delicious effects to our body. So,

all these features of our product will be very helpful to get strong position in the market.

We adopted the cost effective program strategy. Our production department is efficient. It

is affordable for every social class; we will present it in the market with low price.

C. MARKETING MIX

Combination of marketing elements used in the sale of a particular product. The

marketing element center around four distinct functions, sometimes called the Four Ps

1) Product

2) Price

3) Place

4) Promotion

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All these functions are considered in planning a marketing strategy, and any one may be

enhanced, deduced, or changed in some degree in order to create the strategy necessary to

efficiently and effectively sell a product.

The MARKETING MIX approach to marketing is a model of crafting and

implementing marketing strategies. It stress the mixing or blending of various factors

in such a way that both organizational and consumer objectives are attained.

As our organization is customer based so in orders attain the customers we convert these

four Ps in four Cs

oProduct into customer solution

o Price into cost to the customer

o Place into convenience

o Promotion into communication

1) PRODUCT STRATEGY:

As you know from the long procedure of product development we have done a huge

research process to develop a product which is best fit for the public for improvement of

their health. The key benefit of our product is to maintain the health of consumer and

give the satisfaction, this attribute make it unique and remarkable.

It is also its core benefit that is not only but also giving satisfaction because all whipping

cream just improves the taste for a while but they dont give the satisfaction which is

main requirement of the consumers. This benefit also makes our product unique and

attractive. The actual product of classic is low calories with the specific name Classic

flavored cream which is solution of diet food. In real sense it gives the solution of the

customer problem.

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According to our point of view our product is favorable for our customers but if they are

not satisfied with or product packaging, taste, quality etc then we will definitely look

upon their suggestions and try to improve it.

2) PRICING STRATEGY:

Price is the amount of money charged for a product. Price is the sum if all the values that

consumer exchange for the benefits of having or using the product. Price is very

important feature its not just a number or tag to an item. Its only the source of revenue

from the marketing mix all others (product, place, promotion) are cost.

We

use penetration pricing strategy because of product is new in the market and usually

this is the most appropriate approach according to the market experts. As we have lot of

multinational competitors that is why it is very good strategy to capture the market and to

become market leader. Our company set the price as low as possible. The objective which

keeps in mind before selecting the price is to capture the maximum market share and to

become the market leader.

The price we have selected is reasonable and affordable but still if the consumer is not

satisfied with it then we will change it. And the retail price is Rs.30 for 8oml cup and

Rs.35 for 100ml cup. But if the customer will not be satisfied then will decrease the

prices.

Pricing will be done according to the cost i-e cost will be on cost-plus basis. After

considering the cost we will add an appropriate profit. Pricing will be done keeping in

view the prices of the competition, as we have no competitors so being a new product we

have to catch our customers with higher prices for better quality. So we will cut down

costs if necessary in order to meet competition prices.

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DetailRs. Rs.

Cost of the product 18

(MATERIAL + LABOUR + FOH)+ Marketing & Administration expenses 7

Cost price of product produces 25

+ 10% profit 2.527.5

+ Profit of retailer 3

30.5+sales tax 15% 4.5

Our main pricing objective will be sales oriented i-e main pricing goals would be to:

Increase sales volume:

As we plan to grow fast we have to adopt the strategy of increasing sales volume. We

have to discourage competitors so we first have to concentrate on getting customers and

setting up a market share and all this could be done when we campaign effectively for

incrementing sales.

Maintain or increase market share:

As a new comer in the market we have to concentrate on developing a healthy market

share and maintaining it. Many companies go in loss within their 2nd year of opening

because they are unable to maintain their market share. We will avoid this by innovation

and schemes.

The SKIMMING pricing strategy is implemented because the product is new in the

market and usually this is the most appropriate approach according to the market experts.

Also our pricing strategy selected upon some reasons:

Our product has distinct features which are strongly demanded by customers.

Our product has inelastic demand, so we can set the price of our product at highest

possible level.

While using the SKIMMING technique our companys average profit is 10% which is

quite justified regarding the huge investment involved.

PRICE ADJUSTMENT OF (100ml cream pack for all flavors)

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Detail

Rs. Rs.

Cost of the product 15

(MATERIAL + LABOUR + FOH)+ Marketing & Administration expenses 5

Cost price of product produces 20

+ 10% profit 2.022

+ Profit of retailer 4

26+sales tax 15% 3.9

PRICE ADJUSTMENT OF (80ml cream pack for all flavors)

3) PLACE STRATEGY:

Another element of Marketing Mix is Place. Place is also known as channel, distribution,

or intermediary. It is the mechanism through which goods and/or services are moved

from the manufacturer/ service provider to the user or consumer.

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Distribution channel:

We are using the three level channel distribution involving

Whole seller Distributor retailer

Intensive distribution:

We are following the intensive distribution approach in our delivery of products to the

consumers because this is the most suitable method in case of consumer goods.

Potential customers:

We are adopting intensive distribution due to a fact that we have a huge number of

potential customers.

Specific channel members:

We have selected the channel members very carefully because the whole success is lying

in a proper implementation of the strategies and not only the formation of these

strategies.

Role of channel members:

A sound communication system is adopted to effectively communicate all the channel

members. It prevents any miss communication between the channel members and results

in the maximum out put.

Coverage:

We have covered the whole university which is very suitable for our product and it is a

plus point for us. Our future plans about the coverage of our product are the Pakistan.

Actually the target of our product is the whole country. As cleared by our vision

statement.

Assortments:

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We have divided our country into major regions which are our university. We focus on

this region with different strategies. Which attract them? Actually we want to facilitate all

the citizens of our country.

Inventory:

We have a raw material of two months in advance to avoid any kind of conflict or

difficulty which may come for the time being. We have two months production in

advance to meet the requirements of urgent need. We follow economic order quantity

technique.

Transportation:

We have own transportation service to cover all the segments because the success of our

company also depends upon easy access and cover all the segments. Quick service is the

key point and in this regard we have enough transportation.

We will use one level marketing channel.

4) PROMOTION STRATEGY:

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PRODUCER

RETAILER

END CONSUMER


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It is very important P.It plays very vital role for changing the shape and location of

demand. The main purposes of promotion are to inform, persuade and remind the

costumer.

Advertising plays a very important role in the pricing and selling of a company. We have

to make the consumer sure that the price they are paying for our fruity cream is the right

one so; we have to rely heavily on our promotional scheme for bringing out the variety of

flavors in our desert and to make sales. If promotion of our product is not good and the

customer is not even aware of the salient features and uniqueness, then we definitely have

to cut down on our prices in order to rule the market on the basis of price rather than

price and quality together.

Main objectives of advertisement of product:

1) Information: The primary function of advertising is to inform the existence of

the product

2) Image: In our advertising image is the most powerful component. The most

effective is word of mouth. Its what that converts reaction into action, the action

of buying. We all want to have the image of recognition of the company.

3) Motivate the consumer to visit our sales room.

4) Maturity: advertising will put our cream price ahead of competition.

5) Its not just selling. Our objective is not simply to sale

6) Informing people how to use it

7) Present our new brand of whipping cream in front of the people.

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APPENDIX

QUESTIONNAIRE & RESULTS

Do you like to eat cream?

Yes 64%

No 36%

Do you eat cream?

Daily 18%

Once time in week 37%

More than one in week 26%

Once in month 12%

More than one in month 7%

Why do you eat cream?

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Due to taste 60%

Due to fashion 26%

For satisfaction 14%

Would you like to eat cream in different flavors?

Yes 59%

No 28%

I dont know 13%

In which flavor would you like to eat (you can choose more than one)

mango 76%

vanilla 34%

strawberry 92%

pineapple 29%

chocolate 74%

banana 54%

Do you want any other flavor?

Yes 26%

No 74%

Which flavors do you want to add?

Blue berry

.

.

How you rate our product idea?

Excellent 54%

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Good 32%

Fair 12%

Poor 2%

What price range would you prefer?

Rs. 25-30/100ml 11%

Rs. 30-35/100ml 74%

Rs. 35-40/100ml 15%

What price range would you prefer?

Rs. 20-25/80ml 20%

Rs. 25-30/80ml 52%

Rs. 30-35/80ml 28%

From where you get cream for your use

Household makes cream 26%

from milk & cream shop 52%

packed cream from stores 22%

What do you think packed cream should be available in?

80ml 29%

100ml 61%

150ml 8%

More 2%

What do you think cream should be available at?

Bakery 20%

Milk shops 37%

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Utility stores 22%

Everywhere 22%

CONCEPT TESTING:

We have tested the concept about this product by asking (100) prospective customers to

check and test what they think about the idea. The results of our questionnaire are

represented as graphically below. Most of the people like cream especially in breakfast

and households make different product with this food item. When we told them about our

idea of cream in different flavors, in this regard we have also got a very good response

from the people.

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DO YOU LIKE TO

EAT CREAM

YES

NO

LIKING OF PEOPLE FOR FLAVOURED CREAM

YES

NO

IDONT KNOW

14

26

60

0

20

40

60

do you eat cream?

prefrence regarding flavors

due to taste

due to fasion

for

satisfaction

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LIKING OF PEOPLE FOR FLAVOURED

CREAM

liking

disliking

712

26

37

18

0

10

20

30

40

do you eat cream?

flavors

prefrence regarding flavors

daily

once time in

week

more than

one in week

once in

month

more than

one in month

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763492297454

0%

50%

100%

FLAVORS LIKING

FLAVORS

RATING OF FALVORS

bananachoclate

pinapple

strawberry

vanilla

mango

54

32

12

20

10

20

30

40

50

60

EXCELLENT FAIR

RATE OUR PRODUCT IDEA

RATE OUR

PRODUCT IDEA

61

29

8

20

10

20

30

40

50

60

70

PACKED PRODUCT SHOULD BE AVAILABLE IN

product available in pack of

250g

500g

1 kg

more

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After this, we have also made cream and tested that from those people who have filled

the questionnaire, people have really enjoyed this dairy food product that was really

delicious and nutritious as well. Then we again analyzed the customers response to our

Product, represented as:

LIKING OF PEOPLE FOR CREAM IN

FLAVOURS

liking

disliking

Mrktng Project

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