launching of new product

8/9/2019 launching of new product

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MILKY WAY

IDEA OF THE PRODUCT:

Snacking foods generally perceived to be being high on fat and salt which has raised the fear

of unhealthy habit in the consumers mind. Consumers are now searching for snacks with

low-fat, low-calories, and healthy composition.

With the rise in the concern of consumers health, it is more worth full

and profitable to give the customer what they want. So the company MILKYWAY wants to

launch a chips which has all the quality and the goodness of milk. The company wants to

target the kids of age group between 2 14.

Snacks can, and should, be a part of every child's balanced diet. An

afternoon snack will give kids more energy after school, and they'll be able to concentrate on

homework, and have more energy to play outside rather than merely flop down in front of the

television.

It's easy to equate snacking with junk food, but it doesn't have to be the

case. The important thing is to provide kids with choices when it comes to snacking. If all the

choices you give them are reasonably nutritious ones, then everybody's happy:

Industry Profile

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Small quantity of food

can be taken between meals or in place of a meal. Snack food generallycomprises bakery

products, ready-to-eat mixes, chips, Namkeen and other light processed foods

India along with other Asian countries will be at the forefront of growth expected in the global

snack foods market. The sector is estimated to grow to $300bn by 2010.

Growth in the Asia-Pacific region will be driven by the regions high population density, strong

economic growth, rising disposable incomes, liberalized import policies and greater willingness

to shift from traditional food to western diets and growth will be driven by demand for healthier


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products, changing lifestyles and the consumers growing affinity towards convenience foods

specially in developing markets.

These all indication helps us to predict the growth rate up to 6-7% in terms of volumes by 2010.

Though very large and diverse, the snacks industry is dominated by the unorganized sector

According to a survey almost 1,000 snack items and 300 types of savories are sold across India.

The branded snacks are sold at least 25% higher than the unbranded products Savory snacks

have been a part of Indian food habit, since almost ages. Though there is no particular time for

snacks, normally they are consumed at tea time. The variety is almost mind-boggling with

specialties from all regions, which have gained national acceptance industry. he been growing

around 10% for the last three years, while the branded segment is growing around 25% per

annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture,

snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's

retail audit shows that the large sales volumes are due to a marked preference for ethnic foods,

regional bias towards indigenous snacks and good value-for-money perception. Of course the

branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food

companies that are looking at bigger shares and in the branded snacks market, to get down to

basic.

Competitors:

As we have new product plan which, is different than existing products in snack industry. But

still we will have a competition from different product category.

Pepsi co.:- Frito Lay, Aliva

Britannia

GSK: - nutria bar

Parle product: - Monaco smart chips

ITC snack product


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And some regional strongholds :-

Haldirams, Bikano and Balaji, .

Market share

Pepsi co. at 45%,

Haldirams at 27%

ITC at 16%.

The rest is divided between a handful of new entrants, wannabes and many regional players.

lay's

Haldiram

ITC

Others


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SEGMENTING AND TARGETING

Segment and target identification:-

In India the population of children from 0 14 years is 31% (362,874,979)[according to 2009

census]. The sector with age group from (0-14) is a very good sector to target. The sector from

(15 64) is very huge but main intension for selecting children is from internal and external

survey.

INTERNAL SURVEY:- A survey has been made with in the product designing team and

marketing team and selected the sector of children as they are more enthusiastic towards snack

food.

EXTERNAL SURVEY:- The reason for selecting milk chips is due to the results from external

survey . While conducting survey the main response from parents is, they want to feed their

children with more protein food and their children are not willing to have milk directly .they

tried other chips for nutrition food and got disappointed. When we delivered milk chips idea to

them we got a very good response and they feel very happy.

31%

64%

5%

INDIAN POPULATION STATISTICS

0-14

15-64

above 65


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Segment attractiveness:-

We are using funky cartoons and attractive packaging to get more children towards our milk

chips product.

Segment profitability:-

As our products are of high nutrition value and of low cost compared to other chips more people

preferred to buy our product, which leads to profits.

Positioning of the product:

Most small businesses cant afford to invest thousands of dollars in advertising and promotion

every week. They have to rely on making the greatest possible impact with a small budget. The

starting point for many of them is a well-thought-out positioning statement that captures the

essence of the company and then gets translated into a meaningful and memorable tagline.

Milk way faces similar problem. We need to find out the way to communicate and differentiate

out product and creating image effective for out buyers. We are launching a chips which is made

of milk and contain all the quality and goodness of milk, thus are tag line for the product is

chips with quality of milk.

Packaging is one of important source of positioning the product. We are targeting childrens for

our product thus we in our product will use funky picture on packet which attracts kids and we

will provide tattoos and cartoon pictures with each packet.

DIFFERENTIATION:

The product is relating to the chips industry and our product is not an ordinary kind of snackchips. It is much healthier than other snacks and with zero side effects for children when

compared to the snacks present in the market.


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4 PS

Product:

Generally children dont prefer to have proper food. And they always like to have somesnacks and some chocolates. Because of these most of their parents is worrying about their

nutrition and calories. So, we decided to make such a product for children.

Features:

Milk chips are a very different product from others. It has its own features and benefits among

other snack food.

1. As our chips are made with milk it contains good nutrition.

2. We made milky way packaging is so attractive by providing some funky pictures on it to

attract children.

3. Milkchips are crispy n readymade. So it is flexible to use.

4. Milkchips are low-calorie and low-fat item chips.

5. It doesnt have any side effects.

6. Milkchips are safe, flexible and feasible to use.

7. We are using triple layer packaging for more safely use.

Customization:

Milky Way introduced milkchips for children. To available to all children we are providing this

for very low prices. For small packet we are charging only 5rs/-.and for big packet we are

charging only 10rs/-.

Durability:

Milkchips is a durable product. After opened it once it will good for health and better to use only

on that day.


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Reliability:

Milkchips are reliable. These are very easy to eat at anywhere at anytime.

Style:

Milkchips is a very stylish product. We made chips in funky cartoons shape to attract children.


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Pricing:-

Pricing has been the major determinate of a buyers choice. Although non price factors have

become quiet important in the last few decades, price still remains an important factor in

determinate sales and profitability.

Milkyway chips primary objective is to survive in this intense competitive snack market.

Snack industry has a huge market in India, thus survival is short run will surely lead to growth

and profit to the company in long run. Milkyway is introducing a new product in the market and

the company wants to position its product on quality and price. The company is not looking in

short run.

After analyzing of primary data we found that majority of people prefer buying a chips

packet of rs10.

Que .what price you prefer most for buying chips packet.

a. Rs5b. Rs10c. Rs15

65%

32%

3%

rs10

rs15

rs5


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Increase in price will effect the firms position as there is intense competition and we have no

brand name. On the other hand decrease in price give an impression of less quality product in the

mind of consumer and it will also affect the profit of the company.

Generally speaking customers are price sensitive for the items they buy frequently and chips

come under this category. Moreover cost of the product must be so that it would be convince to

the customer as well as the retailer. Eg. Buying a product worth Rs 9, customer has to bring a

change of Rs 9 or else the retailer has to give one Rs 1 change if the costumer gives him Rs 10.

Thus for the price of Milkyway chips is set at Rs 10 for the convince of our customer and

retailer.

Analyzing competitors cost, price and offers is vary important in the pricing of product.

Milkyway has kept its product price similar to its competitor. As a firm is trying for survival in

the snack market we are not concerned about the profit in short run and profit which will be

generated in the short run will be used for positioning, advertisement, sale promotion, etc


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PROMOTION:-

Promotion is like oxygen to any organization to survive, because even though the

manufacturer is producing an extremely high quality product it has to be reached to the end

consumers and main tool for creating image of the product in the minds of the customers is

promotion.

SALES PROMOTION:-

We are conducting promotion campaigns at schools and places where children

density is high to promote the product as a TOM brand.

We are planning to place the attractive hoardings at the main centers to increase

the publicity.

ADVERTISING:-

We created an advertisement with animated kids which will easily attract kids and

as our targeted segment is children, this advertisement will help a lot for the promotion of our

product. As this product is a new product its promotion should be different from other existing

milk chips.

SALES FORCE:-

As our product is a new product. We should appoint a huge number of employees

for increasing the sales. Training is given to the sales force not only for attracting kids but also

for attracting parents with the quality of the product and explaining the advantages for using this

product.


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Placing:-

Making sure that our products reach a large number of costumers we will have a need for

efficient and cost effective models of distribution. The distribution system designed for the

costumers should balance the costs with the benefits of incremental market penetration.

Whenever costumers are buying a product there is completing the last link of distribution

channel which runs from the distributor to the costumers. Marketing channels and distribution is

an important component in the marketing mix. For the company to reach its costumers it is vary

important to select and manage the distribution chain.

A firm needs to identify the types of intermediaries available to carry on its channel

work. We choose a new or unconventional channel because of the different cost, or

ineffectiveness of working with the dominant channel. The advantage is that we will encounter

less competition during the initial move into this channel.

Milkyway being an FMCG product it has to ensure that it reaches each and every

customer in the most possible effective manner. So the company has chosen to type of

distribution chain.

1.)

The first chain is selective because the big retails shop asks for more profit margins which is

around 35 to 40% so to keep the profit margin of the company constant at the same time

producer

distributor(big retail shop)

coustmer


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retaining its costumers, has reduced 1 intermediate in distribution chain. And this type of

distribution calls selective distribution.

2.)

The second chain of distribution which is called Intensive distribution which has the whole

seller, small retail shop and customers. To reach each and every potential consumers has to

supply the product to the small retail shop so for that a whole seller is required who will act as an

intermediate between the producer and the small retail shop. Thus it will ensure smooth and

steady flow of the product along with reaching more number of customers.

producerwholeseller

retailshop

coustmer

launching of new product

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