The product I intend to launch is flavoured milk named as farmish frosty’s milk which is mainly aimed towards young children, housewives who are the main purchasers of domestic items. But due its different flavours frosty can also cater to adults like people working in offices, as a refreshing drink, even the male population, people who are into sports activities need a refreshing drink, this can add as an energy supplement. Most of the hassle using involved in making milk with different flavours initially would be eliminated with our special flavours already added to the market shelves. The new formula with which we have introduced our product encourages the entire household to indulge in buying the frosty bottle themselves irrespective of age or gender.
Frosty has emerged as a brand which pays great heed to the value of great health to our society and has produced a brand which provides an individual with energy in no time.
According to a research externally a 15 ml pack of strawberry tango provides enough energy at the end of a rigorous work out to provide the individual to jog for another half an hour.
Gone are the days when an individual had to take four types of vitamins every day because now with the introduction Frosty will surely become:
” Frosty – Your daily energy supplement”
Frosty low fat aims at targeting the diet conscious segment of the market whereby now it becomes a complete health solution for an individual.
This variety aims at providing the dieters with alternate drinks. Before, the dieters had to look at expensive milk drinks that did not even provide the basic weight control and the energy provision requirement.
Frosty flavoured milk drinks consider its customers as their factor of success therefore before the launch the company conducted focus group testing and also included children in this test, as they are also a key customer group.
3. STRATEGIC PLAN AND FOCUS
3.1 Vision Statement
We have just launched our company few days back in U.K and it is forecasted that the consumers will react to this product positively, reason being that the consumer has always looked for quality taste and flavoured milk, although exists in the market, those which are imported items as well as local, but with our differentiated features and natural extracts from fresh fruits and constant quality checks, we are confident that we will take up the position of market leaders in this particular product category.
We forecast that frosty milk will be much consumed by place and people like:
Schools
Shops
Supermarkets
Homes
Recreational parks
Airports
Such places are in dire need of products that provide the end result instantly; hence frosty’s flavoured milk, as the name says it all will provide instant energy to the tired and exhausted traveller’s or small kids who are traveling may need a refreshing drink. Travellers for instance, may want something that boosts their energy level.
At the moment our forecasts tell us that we are just concentrating to the upper middle class and the middle class but later on we will also cater to the lower middle class and lower class, once we generate enough money to meet our costs.
3.2 Mission Statement
The company aims to become a key competitor in the flavoured milk industry by being an innovative and pioneering organization, conducting business with sense of responsibility and pride, keeping customer’s satisfaction as a prime objective. The apprehensible standards to be set to deal with our customers, governing agencies and suppliers by being honest, fair and principled.
3.3 Goals and Objectives
3.3.1 Goals
Being categorized as a market challenger we have the advantage of trying new techniques, which have not been tried before. This means that through innovative and creative brainstorming, goals set can be achieved
3.3.2 Objectives
Specific – In order to achieve the position of leader in the industry and hit a targeted profit we are looking to have a well enough business model / plan.
Measurable – After calculating sales, expenses and profit margin we assume to make some money at the end of particular period as business have to make some money out of it. So we forecast about our business in that month for the upcoming time.
Achievable – As every company have some Goals and objectives , we also want to achieve something out of our business. For example : In return we are looking for £2000 – 2500 per month.
Realistic – Every business have some realistic goals that is achievable too. For example if some want to make £5000 of profit in certain week. Yes , they can if they have some realistic business plan / model.
Time related – If we are looking to do business of about £30,000 – 40,000 a month, for that we have to give some time in order to create such strategies that make our production fast as well as the distribution channel more efficient and effective.
3.4 Core Competencies / Competitive Advantage
The key success factors that Frosty has are the USP’s which make it different from the other fruit milk drinks.
Firstly the experience that the company has in the juice industry has helped the company as it has the information regarding the beverage market.
Apart from this the company has developed some really unique flavours, which promise to give the customer a real worth for their money. The flavors are a blend of fresh fruit and some ingenious recipes. These recipes are kept secret.
The pre-product launch survey that we had carried out in different households and areas of the city proved that our Frosty provides highest energy and taste and boosts the individual’s strength.
4. SITUATION ANALYSIS
4.1 Evaluation of Marketing Tools and Techniques
In order to evaluate marketing tools and techniques I adopt the following three techniques
Porter’s five forces.
SWOT Analysis
Marketing Audit
Bargaining power of suppliers
Local suppliers are mostly threatened as there is possibility from well settled retailers to import the same product from any foreign country in well enough quantity to shatter the market.
In our case this kind of things may happen but we could able to stand in the market.
Bargaining power of buyers
In this high technological and fast moving environment most of the customers have well enough knowledge about market and that products so most of the time they But in our case this is not the problem as we are the common individual to introduce this product as we can tackle this task.
SWOT ANALYSIS:
Strengths:
Frosty flavoured milk will be the first flavoured milk drink of the country that will be wholly produced by local raw materials, this has been achieved through the stronger ties that the company has with its local suppliers which will be providing the company with fruits that will be processed in the Frosty processing plant.
As far as the milk is concerned Frosty also has an edge over its competitors, as it owns the largest network of dairy farms. One of the strengths of the company is also its most successful product of fruit juices.
WEAKNESS:
One of the major weaknesses of Frosty flavoured milk drinks that affect its competitive position is the low brand recall. We have just launched the product and heavy spending has been incurred in order to encourage buyers to buy more and potential buyers to try the product for the first time. We certainly know that in order to strengthen the products position the name of the product has to be on every buyers tongue.
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Opportunities:
Frosty flavoured milk drinks will be packaged and will allow the company to take advantage of the growth opportunities of around not just some areas but all over the U.K. The company will be selling in ready to carry packs that will be made by recyclable plastic and tetra pack special packaging material called T-550 which keeps the product safer for longer. This package suits the lifestyle of not just children and teenagers but also sportsmen. Another key opportunity that the company sees is that the spending patterns of the people are changing from spending less to spending more. This means that Frosty will be targeting a market, which is spending more money due to more disposable income.
Threats:
The threat however that we face is that we are investing in the fast moving consumer goods market and we see that in the future due to excess competition extreme measures may have to be taken in order to survive the cut-throat competition. Another threat that Frosty faces is the threat of other beverages that may position themselves as being in competition with Frosty. So in this case frosty would have to position itself safely in order to survive indirect competition from companies such as Coke and Pepsi.
MARKETING AUDIT
It Involves company’s analysis in both aspects internally and externally
Internal & External environment of the company
Internal Audit:
PROMOTION
It includes determining the combination of tools that is advertising, publicity, personal selling, and sales promotions. Also we can determine, how to measure effectiveness, the image to pursue, the choice of media the format of messages if ads should be timed throughout the year or during peak periods or not.
Promotion is any form of communication used to inform, persuade and/or remind people about an organization’s or individual goods, services, image and ideas. Promotion planning is systematic decision making relating to all aspects of an organization or individual communications efforts.
Since Farmish is introducing “Flavored Frosty Milk”, customer must first be informed about the product and its attributes. After creating awareness, promotion can be used to develop favourable attributes of the flavoured milk. With an audience category, Farmish can identify to opinion leaders, people who influence others. In addition, it should also fully understand and use the mechanisms of word of mouth communication, the process by which people express their opinion and product related experience to another person.
Farmish’s promotional plan will lay maximum stress on Frosty and its attributes such as excellent quality and taste. Its main objective would be of moving consumers from awareness to purchase. It will also seek to communicate its overall image of the market innovator, introducing different enticing flavours. However, the main purpose of promotional activities will be aimed at creating an image in the consumers mind that when they consume the milk they will be refreshed and will enjoy the alluring flavour.
PRICE
The aim is to give good value for money through good competitive prices, which result in consumer satisfaction. The pricing objective is to optimize the profits of the company and to get the return on investment. The price of the milk is lower than the price of foreign brands with comparable quality and the same quantity. Although local brands cost less but the quality offered by Frosty’s is greater.
Pricing Method:
The basic method for pricing the product is cost-plus method or strategy where a fixed percentage is added to the cost in order to determine the price at which the product will leave the company.
Pricing Strategies:
Primarily two pricing strategies are used in order to achieve the overall marketing objectives and the pricing objectives:
Competition-Based Pricing:
In order to meet competition it is essential that prices should be competitive as compared to other brands of similar quality.
Penetration Pricing:
This pricing is done in a way so as to attract consumers to buy the product that will enable the company to penetrate into the market and gain market share. One way to do this is by lowering the pick-up price of the product, which makes it more easily reachable for the consumer. Introducing smaller bottle sizes with less weight can lower pick-up price.
Retail Prices of Farmish Frosty Milk
150 ml bottle £0.40 P
250 ml bottle £0.90 P
1 litre pack £1.40 P
SALES PROMOTION
Sales promotion involves paid marketing communication activities that stimulate consumer purchases and dealer effectiveness..
The 3 main objectives of sales promotion is to,
Generate trial and repurchase,
Build market share and,
To build brand image and positioning.
Advertising would create a specific image in the mind of the consumer i.e. positioning. Similarly sales promotion will be carried out in a way so as to further the quality perception of the product.
Sales promotion helps attract customer traffic. For example, if Farmish would offer free samples on trial in stores to draw customers.
Since Farmish’s Frosty’s Milk is a consumer product, their success depends upon satisfaction, trust and goodwill. They believe, they can best serve the needs following a consistent, fair and sensitive program of consumer communication. For that reason we set up a help line 0800-8067840
DISTRIBUTIONS
Distribution decisions include determining whether to sell via intermediaries or directly to consumers, how many outlets to sell through and whether to control or cooperate with other channel members.
We planned to distribute the products on our various outlets covering all over the United Kingdom. To make sure that the customer gets the milk in its original premium form, therefore we focus to distribute Frosty’s flavoured milk twice a week amongst the outlet.
DISTRIBUTION CHART FLOW FOR FARMISH FROSTY’S MILK
Warwickshire
Warehouses
Distributors
Retailers
Wholesalers
Consumers
Personal Sales Force
Institutions
External Audit :
Competitors:
Frosty flavoured milk does not consider itself as extension to the segment consuming milk. But it sees itself as a key competitor in the flavoured milk drink industry. Our competitors are currently well settled in the market and have a major share of the market. With the launch of Frosty flavoured milk it will come in direct competition with the local and foreign rivals such as Vanilla flavoured Milk by ASDA, Yazoo drink by Friesland & NESQUIK by Nestle. Frosty aims to position itself as a brand with a different image than its competitors. Frosty thinks that it should make sure that a fun image of the product is created in the minds of the customers. Frosty through its creative slogans wants to create this image.
Our company considers Yazoo as the market leader in the flavoured milk industry with a high market share of the urban markets and an innovative approach of providing the customers with the new tastes. The product that we launch will have a similar approach to that of Yazoo in providing the customers with a range of totally new flavours. Nestle is as market challenger to Yazoo and is giving Yazoo a tough time with respect to increasing market share.
If the leader offers a price advantage then Frosty would also do the same. It goes with any changes in packaging. Through the companies sources it has attained information that suggest that the Yazoo is planning to launch its flavoured milk in family size bottles. This information is enough to launch a major offensive against this move. This means that by the time Yazoo would launch its family size packs we would be already in the market and may even have an advantage of claiming the idea as our very own
Demographics:
The demographic environment mainly provides a brand structure for our company to place our product. In other words, it greatly facilitates in the market positively for products and determining its possible competitors.
Almost many social classes consume flavoured milk; age and gender factors do not have a significant impact on this milk. And it could be somewhat broadly and easily categorized. Individual belonging to all sexes, and ages consume our milk. The Frosty Flavoured Milk is best been suitable for the following:
Young Children
Teenagers
Married woman for small children
Adults
Old-age people
Psychographics:
There are people who belong to middle and upper – middle-class. Modern time-conscience, busy people, students, and children who want to work hard and believe in achieving their goals, our Frosty Flavoured Milk will be source of satisfaction, energy and refreshment, and more importantly convenience and timeliness on their busy lines.
The astringent and hygienically maintained flavour’s give its refreshing quality. Many people are not aware of the criteria of “Mutual-Drinking” which applies to Frosty flavoured Milk that has good quality and flavour balance, and does not need any artificial aroma.
4.2 Company Analysis
Focus:
The company’s main focus is to attain the position of a leader itself in the Industry.
Culture
Our reputation for quality, taste and nutrition is best – and we are also being trust by our consumers on what we do. We are also looking forward to get delighted by our consumers because of the new and innovative products that we have yet to create.
Strengths
As far as the milk is concerned Frosty also has an edge over its competitors, as it owns the largest network of dairy farmers
Weaknesses
One of the major weaknesses of Frosty flavoured milk which also affect its competitive position is due to having the low brand recall and in order to strengthen the products position the name of the product has to be on every buyers tongue
Market share
Currently in this highly competitive environment we are having 10-12% of market share but our aim is to acquire at least 30%-40% of the flavoured milk market share by the year 2011. The high margin would attain us the desirable market share and have all the possibilities to make our way towards the top ranking in the market.
4.3 SWOT Analysis
Internal Environment of our company
Frosty flavoured milk will be the first flavoured milk drink of the country that will be wholly produced by local raw materials, this has been achieved through the stronger ties that the company has with its local suppliers which will be providing the company with fruits that will be processed in the Frosty processing plant.
One of the major weaknesses of Frosty flavoured milk drinks that affect its competitive position is the low brand recall
The external environment of our company
The company will be selling in ready to carry packs that will be made by recyclable plastic and tetra pack special packaging material called T-550 which keeps the product safer for longer
Another threat that we are facing is from other beverages that may position themselves as being in competition with Frosty. So in this case frosty would have to position itself safely in order to survive indirect competition from companies such as Coke and Pepsi
4.4 Industry Analysis
4.4.1 Competitor Analysis
Market position
Farmish Frosty is producing flavoured milk; thus, we are competing with all the players in the. Milk industry like Country’s life organic milk, Nestle Milk & flavoured milk brands like FRIJJ, Milka, Rose Milk etc. Hence our competition is highly existing and established milk brands in the market. Farmish Frosty hopes to position its flavoured milk in a totally different perspective than that of its competitors by offering convenience for all household individuals.
Market shares
SWOT
4.4.2 Collaborators
Subsidiaries, joint ventures, and distributors, etc.
4.4.3 Customer Analysis
Number
Type
Value drivers
Decision process
Concentration of customer base for particular products
4.4.4 Porter’s Five Forces
4.4.4 Porter’s Five Forces
4.5 Climate/Environmental Analysis
Macro-environmental STEEPLE analysis:
Social and cultural or demographic
Technological
Economic and Supply/Demand
Environmental (natural)
Political
Legal
Ethical
5. MARKET-PPRODUCT FOCUS
5.1 Marketing and Product Objectives
5.2 Market Segmentation & Target Market
In order to approach our target consumers, Farmish divided the market out in different segments. These segments were taken to be the potential markets having the most return. Segmenting was done under the following core elements.
Geographic Segmentation:
In the geographic segmentation, we first went for the population factor. We started our launch from the main parts of UK. We launched frosty’s milk first in London where we aimed at the renowned retail stores and super stores like Asda & Tesco’s and then in Manchester and Birmingham..
This was a good start as we have gained sales instantly. After only a matter of two to three months we gained 15% market share in London. Greater market share in London was due to the cosmopolitan city.
Demographic Segmentation:
In the demographic segmentation, our primary concern was the Age factor. In that, we are willing to address the youngsters from the age of 5 and above. Usually milk is associated with young children, so in our initial launch we targeted the young children and also the teenagers. Other than that, we are also concerned for the family life cycle; we chose families, which were primarily young married couples with young children as our potential targets. We preferred these families to belong to the upper and middle classes. We also preferred educated people with good buying power. Income was another factor we took into consideration, as we are not focusing on the rural or suburban areas, but more on the urban cities, mainly the upper middle class segment.
As the population distribution and usage pattern shows that flavoured milk as a product is mainly consumed in the upper class, upper middle and middle -middle class. So frosty will also penetrate in this particular segment with different marketing programs.
Individuals who greatly value quality, convenience and time, those who are trend following, energetic and outgoing also come into our target as our proposition. The family life cycle limits should also be increased to cover all the following categories as well.
Bachelors
Young married
Young married with young children
And families with young children
Behavioural Segmentation:
Consumers justify the consumptions of milk for the benefit of releasing fatigue and lethargy, as milk gives an individual a feeling of refreshness and instant energy, in a way recharging a person. By behavioural factors we can easily depict what sort of consumers would be best fitted for our flavoured milk.
It is of interest to note that the role of flavoured milk can vary differently during different parts of the day categorized as follows:
Breakfast Drink: Our milk will be aimed towards the morning drinkers of milk, usually school going children, as energy drink. It serves an energizer and with our special flavours, given the amount of energy they bring, using strawberries, mango, vanilla etc, add to a part of a young child growth and is also good for the body as a whole. Is can also be used by teenagers, as the trends today are changing and much of our culture is being influenced by the western culture and we find that having milk and juices in the morning as at breakfast time has become a normal norm.
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Mid-Evening Drink: during the evenings frosty’s milk can also be used as an instant energizer to those individuals who are into sport activities, people who do vigorous exercises. Over here, we can even segment on the basis of health conscious people who want to maintain a healthy diet and cut on high fat food, for that as well, we have our separate line for low fat flavoured milk, which comes in all flavours. So clearly we can say that our product will be catering to both males and females who play sports. The only difference being that males want something refreshing to quench their thirst and females want an energizer drink which is low in fat, so out flavoured milk with cater to the needs of both the genders. Many school going children would also want the milk as part of their after play, coming to their mothers and asking for a cold glass of flavoured milk.
Night Drink: can be used to relieve oneself from the daylong tension and fatigue. Even adults can have this drink before going to bed, as it tends to soothe ones mind with the days long work.
We can segment our markets on the basis of consumer usage rate, those individuals who are more loyal to flavored milk can be targeted with more diligence and we can use appropriate strategies to attract potential consumers towards our product.
Psychographic Segmentation:
In the Psychographic segmentation, people who are conscious of their life styles should also be brought in the target market. The concept of leading a casual life with flavoured milk as a daily refreshment drink should be introduced.
Flavoured milk should be made a substitute for other drinks such as juices and fizzy drinks for the consumers who are food value conscious. With our frosty’s milk being introduced in tetra packs as well as cans it would add to the lifestyle of the elite class, and would also be easy to carry around for young children as a snack pack for their lunch periods.
5.4 Point of Difference
Because of our close ties with our suppliers and our own dairy farms the acquiring of the raw materials is easy and cheap which gives us an edge over the competitors and gives us an advantage in pricing our products this makes that we can lower our price and still gain the same advantage
5.5 Positioning
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