Markeeting Managment New Business Plan
Contents
Executive Summary:
This
is a tutorial project for introducing a new product with an existing company
into current market or an existing product of a company into a new market or
region. Our idea is to introduce a new product in an existing market with an
existing company VITAL TEA. The product which we will going to be introduced is pasteurized Milk supposed name
as “VITAL MILK”.
Vital
Tea (A player of the Tea industry in Pakistan) is relatively new but has
secured its position due to its splendid taste&value.
Currently, Vital has introduced the following tea making products.
- Vital Tea (Flagship Product).
- Dawn Classical Dust Tea.
- Surhan Dust Tea.
The company is distributing these products
all over Pakistan. However, our idea is to introduce respective product (VITAL
MILK) in the market of Bahawalnagar. As milk is an essential element for making
tea and other dairy products. It is also a profitable business. We studied that
in the market of Bahawalnagar city, there are 1.75 lac consumers consuming raw
milk at a price of Rs: 60-70/kg but are displeased with the quality of milk.
So, we found this gap a good opportunity for our business. We want to offer
quality pasteurized milk at a minimum affordable price. Our target customers
are the dissatisfied people consuming raw milk.
Mission
and vision
“And our vision is to became the number one milk producer in the market
of Pakistan by offering the high quality pure milk at a minimum affordable
price “
Marketing Situation:
Bahawalnagar
City is a market with two lac peoples in it, out of which about 1.7 lac peoples
are purchasing Raw Milk at a price of Rs: 60-70/kg and are unhappy with the
quality of the milk. Some potential customers’ also use pasteurized milk of
different brands such as Olpers and Milk Pak. But this covers only 25% of the
total market. The rest of the 75% milk consumers purchase raw milk because they
found it reasonable.
Objectives and Issues:
·
Our main objective is to provide
everyone desired quality milk at an affordable price
·
Second objective is to make profit and
increase the market share
Issues regarding to these
objectives are:
u As
we will purchase milk from farmers , milk hawkers so the quality of the milk may be
different(not up to the mark)
u Fluctuation
in prices is a big barrier for the affordability of the product
Marketing Strategy:
Segmentation
In the Market of City Bahawalnagar, our
segment is those people who are consuming raw milk 1kg -3kg on daily basis.
Targeting
All Milk Consumer, housewives, children, students,
Ramadan and breakfast.
Positioning
Affordable options for consumers for buying high
quality pasteurized milk
Our slogan is “ Purity for every-one”
Differentiation
We will be different from our competitors due to
the purity and affordability of the product.
4Ps (Product, Place, Price, Promotion)
Product
Currently, our product is Pasteurized Milk,
supposed name as Vital Milk, but in future our products will be Butter,
Ice Cream and powder Milk,
Place:
Bahawalnagar City (Punjab, Pakistan)
The place we are going to set up pasteurize plant
is 7 km away on Haroonabad Road from the Main Bahawali Chowk. The reason behind
is main highway road which will help us to purchase milk directly at our plant
instead of making milk collection centers. Another reason for this place is
that the transportation and distribution of product from plant to city and
other nearby cities will be easy and less costly. We sell our product directly
to retailers.
Producer
Retailer
Price:
We will set an affordable price equal to our
competitor but we give high quality as compare to our competitor. Besides this,
we give special discount on 3kg pack, and budle offers.
Beside that Vital Milk will be sold on retail
stores, convenient stories Departmental outlets etc., the pricing strategies
may will be set by those company sell to.
Promotion:
Advertising is the main source of increasing
customer awareness. Mostly companies use television for promotion of their
products.
There are a number of local cable operators
providing cable services. So, we will promote the product through local cable
operators. We will also apply event promotion strategies during the holy month
of Ramadan.
SWOT analysis
Strengths
Our strengths will be the following points.
1-
Quality
of our milk , we sell the purest form milk to our customers
2-
Price
affordability
3-
Country
wide fame of Vital Tea
Weakness
·
Control
over milk quality because we purchased milk from outside so we are not sure
about the quality of milk
·
Incrase
in prices (electricity , raw meterial , oil prices ).
Opportunities
Consumers are purchasing milk at convenient
price but are disappointed with the quality of the milk. This is a big
opportunity for us to satisfy them with our product. Also, we have added
opportunity that there is no other local pasteurize Milk Company. Our future
products will be also providing us opportunity to capture existing and new
markets.
·
Population
growth rate
·
High
Urbanization rate
·
Awareness
from the diseases caused by open milk/raw milk
·
Flexible
govt policies for food industry
·
Have
significant growth opportunities
Consumers’ preferences survey shows that in
Pakistan 89% of the peoples in cities considered packed milk as a safe while
only 13% considered open milk as safe.
Threats:
Currently we have no threat but in future if
any other company wants to capture this market than that will be a threat for
us
·
Low
Purchasing power
·
Technological
Advancement
·
Increasing
Cost (production and distribution)
Action Programs:
Budget
The projected budget for this business plan
is the sum of the following costs
Land + Construction:
Pasteurize plant Cost:
Labor:
Electricity:
Transportation:
Packaging:
Advertising:
Control:
·
We will make continuous improvement
in the quality of every product we make and in every activity we perform.
- For the quality of milk which we purchase, we will use a milk testing method, The Lactometer test ( a system use to chek the quality of milk).
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