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.
  1. Vital Tea (Flagship Product).
  2. Dawn Classical Dust Tea.
  3. 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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