Mrktng Project
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Transcript of 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