Market Assessment Project Final

8/6/2019 Market Assessment Project Final

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Marketing Assessment Worksheet: Strategic Marketing i

Appendix Marketing Assessment Tool

SUMMARY

PRODUCT / SERVICE DESCRIPTION

Core product: Daily use productActual product: dairy product, tetra pack milk.Features: UHT processed milk available in 250 ml ,500 ml ,1 ltr ,1.5 ltr. targeted towards allages.Benefits: Stronger bones, enhance metabolism, source of iron.Attributes: Proteins, phosphorus, calcium, potassium, riboflavin, lactose, iron, fats.protection oftetra packaging with all the nutritional facts written on it.

POSITIONING STATEMENT (this is your elevator pitch)

For: The overall market including children, youth, adults and families

Who are dissatisfied with:

Taste: minimum dislikingQuality: more quality dissatisfactionPrice: cheap

Our product is: Pure milk to satisfy customers health conscious need with great taste and

energy.That provides: it provides quality, health, energy andhappiness.Unlike: milk mans unhygienic and unhealthy milk.We have assembled / We provide: milk obtained from natural dairy farms and healthy cowsand preserved with state of the art technology.

BUSINESS MODEL (how you create revenue: Please refer to the

Handout)

Partner: nil

Distribution: whole sale distribution.

Availability: 80 cities across Pakistan.Manufacturing: Sahiwal, Sukkar by engro food limitedPrice:250ml --20 Rupees500ml 40 Rupees1 ltr 70 Rupees1.5 ltr --96 Rupees


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Size: increase sales of UHT MILK and 23% market share

Revenues: engro foods is 43% of 21billionVolumes: increased by 100% to 12.2 million liters in 2010 from 6.1 million liters in 2009

TECHNOLOGICAL UNCERTAINTIES

If any

Not applicable


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MARKET UNCERTAINTIES

Fierce competition, High tax rate, economical, social and political conditions, law andregulations of the country and inflation are the main factors that affect olper milk.

CHANGES IN BUYER KNOWLEDGE REQUIRED

People prefer unprocessed milk over UHT processed milk because they thought that due to hightemperatures it may lose nutritional contents. Therefore olpers is promoting itself as an healthyand qualiy product.

CHANGES OCCURRING IN BUYER BEHAVIOUR

The customer has a great knowledge about their needs and wants and also know which product isbeneficial and have low cost. Olper is focusing a lot on advertisement and promotional activitiesin order to understand customer needs and wants and make the product accordingly.

MARKET EXTERNALITIES: INFRASTRUCTURE / COMPLEMENTARY

REQUIREMENTS

Not applicable.

MARKETING ASSESSMENT WORKSHEET #1:

MARKETING MACROENVIRONMENT

WHAT ARE THE KEY TRENDS OR CHANGESTHAT POSE THREATS OROPPORTUNITIES THAT AFFECT YOUR INDUSTRY / FIRM INPARTICULAR?

(Including your raw materials, suppliers, production, service delivery, distribution, customers,marketing)

1. Demographic trends

Age (Industrial markets: Industry trends if B2B)

Pakistans ranks 6th in the most densely populated countries of the world. The teenpopulation in Pakistan is also very large and is expected to grow even more. Whereas olpers

milk is 5 year old brand.Total Population of Pakistan is 185 million (July 2010 est.)Urban population 32.52%0-15 years 43.4%16-64 years 53.09%65 so on 3.5%Gender ratio (Male: Female) 108.5:100

Gender (Industrial markets: Firm Size if B2B)


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Not applicable.

Education (Industrial markets: Industry concentration / Mergers and

acquisitions if B2B )

Even though the brand calls for a small percentage of an individuals income but lowerclass wouldnt want to buy the brand maybe because they are price sensitive orbecause they believe lose milk is better than processed milk and has all the nutrientsthat the processed milk lacks. However, olpers milk is trying to change the image ofprocessed milk as nutritionist milk and associated with healthy life style.

Occupation / Employment (Industrial markets: employment if B2B)

The changed workforce will have an effect on the industry; housewives have become workingwomen. Plus the unemployment rate has also increase in the past few years due to the world

wide inflation. Working mothers want healthy as well as attractive food for the kids, healthconscious people prefer it.

Family Size / Life Cycle

Population rate of Pakistan is increasing by 1.8% annually moreover family size and their lifecycle is increasing day by day as a result demand of milk increases.

Urban / Rural / Suburban

Olper was initially launched in 80 cities of Pakistan. It is distributed according to its targetsegments. Olper is available in urban, suburban and rural areas.

Other geographic / location

It is available in 80 major cities of Pakistan.

2. Social trends (values, attitudes, life styles)Pakistan has a feminist society and people prefer to live in a family system and collectivesociety that has a high effect on product. Lower class people prefer to use milkman milk

instead of tetrapack milk because they thought that it is unhealthy and lower nutritionalcontent.The social trends have been changing with the passage of time, different level of lifestyles are followed all over Pakistan. Now adays, people give priorities on the basis ofquality, price, brand recognition.


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3. Economic trends

Incomes

Olper major target market is middle class and upper class whose income level is fromRs. 15,000-Rs. 60,000

Economic Growth

By 2008 per capita income of Pakistan was $1027 that is increasing as 4.3% (2009 est.)3.6% (2008 est.), 1.6% (2007 est.) and industrial growth rate is 4.9% (2009 est.)

Prices

Due to high inflation rate of 14.19%, prices are really high and buying power is less.

Savings / Credit

There is no saving, 24% of population is below poverty line and 15% unemployment

Revenues: $25.33 billionExpenditures: $36.24 billion (2010 est.)

4. Natural Environment

Availability of Natural Resources and Energy

Not applicable

Environmental Responsibilities

To make sure that their operations arent destroying or harming the environment or thehuman beings and animals living near the area. the company has interventions in number ofareas like education, health, environment, sports, and infrastructural improvements


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5. Technological Trends that affect your firm or industry

The technology that engro is using is a modern technology but market has to be monitoredfor any technological change to gain competitive advantage over the competitors. In year2005, the Ministry of Industries and Production established Dairy Pakistan Company on thelines as the model of Dairy Australia.

6. Socio- Political

Ethical standards

Olper has developed its strategies according to the culture of Pakistan and has been workingon it.

Political

The political situation is not stable, the law and order situation is extremely poor. Highinflation rate has bad effect on purchasing power.

Regulatory

Industrial growth rate is 4.9% (2010 est.) due poor economic situation and industrial regulations that areextremely weak.

MARKETING ANALYSIS WORKSHEET #2:

MARKETING TASK ENVIRONMENT

1. MARKETS (industry as a whole)

Description Segment #1 Segment #2 Segment #3 Segment #4

Size:

Current

Kids (5-15 years)Urban, suburban,rural.

Middle, high class.Health Fun andenjoyment

Youth (16-25 years)Urban, suburban.Upper and middle

class. Luxurious lifeStyle, excitement

Adults (26-60 years)Urban, sub urbanUpper and middle

classDiet and healthconcious

FamiliesUrban andsuburban

Upper andmiddle class

Growth forecast

Pessimistic

Mid range

Optimistic (why?)

43.4% of totalpopulation.Urban populationoptimistic

36 million of totalpopulation

Mid range

High growth Stable


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Geographic

distribution

(where?)

Urban, sub urban, Urban & suburban Urban Suburban

Profitability

(how?)

Medium

Sales:Revenues:

High High High

Product Lifecycle

Product Adoption

Stage (if

applicable)

N/A N/A N/A N/A


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2. COMPETITORS

Competitor #1 Competitor #2 Competitor #3 Competitor

Performance/

Trends

Nestle milkpakmarket share -- 43%

Good MilkMarket share 16%

HaleebMarket share 13%

OtherMarket share

5%

Key Strengths

(Core

Competencies)

Financially Strong.Wide distributionand distributionchannels.High brand equity.

Strong consumerand productresearch,Latest plant,Good relations withfarmers.

Latest technologyfor milk processing,Best qualitypackaged milk,Strong brand image,

Key Weaknesses Narrow TargetMarket,Low Advertisement,

Low quality,Milk collection cost,Distribution cost.

No advertisement,

Strategic Alliances High reputation andimage


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3. CHANNELS

What are the trends for distribution? How are channels changing?

People have a great knowledge about their needs,wants and the product he/she going topurchase. in now adays competition is so high that creating a channel for customer is not a

good strategy but make a strategy so strong that customer gain maximum attention and forcethem to buy your product through own channel.

4. SUPPLIERS

What trends are affecting suppliers?


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CUSTOMERS

1. Who are your potential customers?

Segment #1

(Kids)

Segment #2

(Youth)

Segment #3

(Adult)

Segment #4

(Old age)

Size

# customers

(estimate)

potential sales $

(estimate)

possible

penetration

(why?)

Changes

Low usage

Little changebecause usually kidsfeel irritating todrink milk.

High usage

Little or no changes

High usage

Little or no changes

High usage

Little or nochange

Usage

characteristics

(how much?When? for What

purpose?)

Twice a day,usuallyused in breakfast

and after playingphysical games,before sleep in orderto gain energy.

2-3 times in aday,used in

breakfast, afterplaying a physicalgame in order togain energy.

Once in a day atbreakfast for healthy

life.

3-4 times aday, at

breakfast, atlunch somehand beforesleep.

Relationship

issues/ Potential

Not applicable Not applicable Not applicable Not applicabl

Key BenefitsSought

Health and energy Health and energy Health and energy Health andenergy


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Segment #1 Segment #2 Segment #3 Segment #4

Purchase

Motivations

(Maslows)

Physiologicalneeds

Physiologicalneeds

Physiological needs Physiologicaneeds

Product

Involvement / Risk

High Low Low Low

Adoption Issues

Relative

Advantage(s)

Complexity

COMPLEMENTARITY

How does theproduct

complements

the main

product or vice

versa?

N/A

Milk shakes, cornflakes, cereals,custards, ice cream

N/A

Tea, desserts, milkshakes

N/A

Tea, desserts, milkshakes

N/A

Porridge


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2. Customers Purchase Decision Process

Purchase Decision

Process


WHO DECIDES- Parents/guardians Themselves Themselves themselves

NEEDRECOGNITION

(when, where,

how?)

At breakfast, inevening and beforesleep.

At breakfast, afterplaying games,before sleep

At breakfast andsometime beforesleep

At breakfast,evening andbefore sleep

Information

Search

(what, where,

when, how, how

much?)

Through ads andparents

Throughadvertisement andsomehow frompackaging

Throughadvertisement andsomehow frompackaging

Through fammembers,advertisemenand somehowfrom packag

Product

Evaluation

beliefs aboutproduct

benefits / costs

value /

importance of

benefits / costs

price

sensitivity?

Not so much

attractive inchildren.

Less value

Less

Status and health

consciousnesspopular due to goodtaste and nice look

More value

Less

Concerned toward

taste and ingredientdue to healthconsciousness

More value

Less

Healthconsiousness

More value

Less


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Customers Purchase Decision Process continued

Purchase Decision

Stage


Product Choice

purchase

situation

Parents or guardian Youth bythemselves

Adult by themselves Other familymembers or O

age

POSTPURCHASE

satisfaction

post purchase

activities

repeat

purchase

loyalty

Satisfied because ofhealth factor

Nil

Yes

Maximum Loyalty

Satisfied because ofstatus and luxuriouslifestyle and healthfactor

Nil

Yes

Moderate loyalty

Satisfied because ofstatus and luxuriouslifestyle and healthfactor

Nil

Yes

Moderate loyalty

Satisfied becof health fact

Nil

Yes

Maximumloyalty

Demographics

age

gender

family

income

education

location

5-15 years

Male and female

Middle, higher

N/A

5th to 8th grade

Urban,

Suburban.

16-25 yearsMale and female

Middle, higher

15000-25000

Matriculation

Urban and suburban

26-50 yearsMale and female

Middle, higher

30000-50000

Intermediary,bachelor, master orany other.

Urban and suburban

51-65 yearsMale and fem

Middle, high

15000-50000

Not applicab

urban andsuburban


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Social/ Cultural

Traits N/A Influenced bymodern orwesternized culture

Social impact Social or traditional im

Values/ Lifestyle

N/A entertaining,excitement,adventurous

Sophisticated,humble, decency,mature

Unity,collectivist ajoint familiessystem.


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MARKETING RESEARCH

SECONDARY MARKET RESEARCH:

SOURCES EXAMINED SOURCES TO BE

PURCHASED / ORDERED/

FOUND

INDUSTRY CONDITIONS

CUSTOMERS IN

GENERAL

CUSTOMER NEEDSCUSTOMER BEHAVIOUR

COMPETITORS

POSITIONS

COMPETITORS ACTIONS

MARKET DEMAND

FORECASTS

PRIMARY RESEARCH

QUALITATIVE QUANTITATIVE

CUSTOMER NEEDS /

MOTIVATIONS

CUSTOMER DECISION

PROCESS

BENEFIT EVALUATIONS

CONCEPT TESTS

PROTOTYPE TESTS

METHODS


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2. Total Product / Service

YOUR FIRM Competitor #1 Competitor #2 Competitor

Product Line

(# offerings)

Brand Names

Awareness /

recognition

Value

Associations /

images


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Product continued


Core Benefits

Features

Quality

Reliability

Consistency

Friendly

Trust

Responsiveness

Customization

Brand Personality


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After sale

Warranties /

guarantees

Service /Support

3. Pricing


Product / Service

Price(s)

Other Costs

(delivery )

Perceived Value

Discounts / Price

Promotions

(who, how, how

much, when?)


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5. Advertising and Communication


Promotion

Objectives

Awareness

Knowledge

Liking /

Preference

Reminding

Media (use /

message)

Print

TV

Radio

Internet

Direct Mail


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Advertising / Communications continued

Public Relations /

Publicity

Trade shows

Events

Partnerships

6. Sales Force


Organization / Size

Training

Motivation

Team support

Relationship

quality

Effectiveness

Market Assessment Project Final

Documents

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