amigo flavoured milk

8/11/2019 Amigo Flavoured milk

1/18

AMIGOFlavored Milk

Syed Mohammad HassanNoukhaiz AslamAwais AhmedAbuzar Khan

07-May-14

Submitted To: Ms. NOOR UL AIN

Quaid-e-Azam School of Management Sciences

QAU, Islamabad


2/18

AMIGO

2


3/18

AMIGO

3

ACKNOWLEDGEMENTS

All praise to the gracious ALMIGHTY ALLAH WHO blessed us with the courage to

complete this project. This work would not have been possible without the support and

encouragement of our Marketing Management course instructorMs. NOOR UL AIN.

We express our gratitude and deep sense of indebtedness for her valuable advices and

encouragement, and for giving us very useful information that helped us in completing

this report.


4/18

AMIGO

4

Table of Contents

Sr No Contents Page No

1 EXECUTIVE SUMMARY 3

2 INTRODUCTION 4

3 SITUATION ANALYSIS 5

4 SWOT Analysis 6

5 MARKET SEGMENTATION 7

6 TARGET MARKET 7

7 PRODUCT LIFECYCLE AND TARGET STRATEGY 7

8 PRODUCT/MARKET PENETRATION 8

9 TYPE OF CONSUMER PRODUCT 8

10 MARKETING MIX 9

11 REFERENCES 16


5/18

AMIGO

5

EXECUTIVE SUMMARY

The purpose of this project is to develop marketing plan for a product to be newly

launched. The product chosen was "Flavored milk".

In this marketing plan, we have covered Industry analysis, target market, market

segmentation strategies. This report intends to cover most of the aspects of marketing

plan indicated in the outline. The Marketing Mix was discussed in detail and covered all

the budget and promotional strategies to create brand equity in the market and take the

share from the market. The four Ps of the marketing mix were elaborated keeping in

mind the current market trends and the value out product will provide to the consumer.

It will be a high quality distinguished flavored milk charged at a markup price

channelized through distributors/wholesalers to retailers and eventually reaching the

consumer.


6/18

AMIGO

6

Introduction

The flavored dairy beverage business is poised for unprecedented growth in a category

that previously positioned milk as a commodity rather than a drink. There is a market

growth projection for the flavored dairy beverage business, which encompasses

refrigerated and shelf-stable flavored milks and milkshakes, coffee-milk drinks, dairy-

based drinks, yogurt beverages, smoothies, milk flavorings, hot cocoa mixes.

Innovations in flavors, packaging, and manufacturing, are some of the driving forces

behind new product development. Single-serve bottles, licensed characters, cool flavors,

carbonation, and old-fashioned wholesomeness are making milk and milk-based

beverages the drink of choice for today's healthy lifestyle-seeking, grab-and-go

consumer.

Flavored milk is available in numerous forms and varieties. It can be sold as a powder to

be added to plain milk, such as Nesquik, or bought pre-mixed alongside other milk

products. Some flavored milk products are designed as dietary supplements, such as

Blenders, Horlicks, Nestl Milo, Ovaltine and Instant Breakfast drinks such as Up & Go,

usually include additional vitamins or minerals.


7/18


8/18

AMIGO

8

SWOT Analysis

Strengths

We are offering the flavors which are not currently available in the market.

Attractive plastic bottle packaging.

Good taste.

Healthy ingredients.

Wide variety of flavors.

Weaknesses

Initially we are facing higher packaging cost as we are outsourcing these

operations.

We do not have our own distribution channels.

Chance of setbacks while matching the demand and supply.

Getting to keep the pace with the backward/forward integration will be

difficult in the milk industry.

Opportunities

Expansion of market in the near future.

Launch new flavors like MARS, Tobelerone and Bounty flavored milk.

We can introduce low fat milk to cater health and diet conscious people.

We can segregate our flavored milk into normal flavored milk and extra rich

cream milk.

Threats

Negative product perception of flavored milk.

Due to immature market there is less product awareness.

Entrance of a new and stronger competitor.

Brand wars.


9/18

AMIGO

9

Market Segmentation

Geographic Segmentation

The geographic regions which our product will be catering are the high income

groups of Lahore, Islamabad, Karachi, Faisalabad, Multan, and Rawalpindi.

Target Market

The core target market of Amigo flavored milk is between the age group of 7-22years old. The youth we are targeting come from households with incomes ranging

from moderate level to high level. Therefore people belonging to statuses of lower

middle class to high class will be able to afford this beverage.

PRODUCT LIFE CYLCE AND TARGET STRATEGY

Flavored milk market is an oligopolistic market with few competitors. Most of the firms

are charging more or less same price of their product. The smaller brands follow the

market leaders and respond to their price fluctuations rather than their own demand or

costs. Secondly flavored milk is in the introduction stage of the product life cycle. Most

of the people are not familiar with the product. Therefore product awareness is required

for Amigo flavored milk.


10/18

AMIGO

10

Sales and Profit ($)

Lossesinvestment ($)

0

Sales

Profits

Time

ProductDevelopment

StageIntroduction Growth Maturity Decline

PRODUCT/MARKET PENETRATION

Market Penetration Product Development

Market Development Diversification

ExistingProducts

NewProducts

Existing

Markets

NewMarkets

Amigos growth opportunities are identified by the Market Penetration, in which the

product already exists in the existing market. As in the case of Flavored Milk which is an

existing product and market is targeted towards growing kids or sportsmen (which was

its existing market) and to the youth and their milk consumption style.


11/18

AMIGO

11

TYPE OF CONSUMER PRODUCT:

As Flavored Milk is an FMCG (Fast Moving Consumer Good), it will fall under the

category of a convenience product, as convenience products are those which people buy

for frequent use.

Following are the market considerations for Amigo Flavored:

Customer buying behavior Amigo Flavored Milk is included in the impulse

driven buying category. People will not specially plan to go to the store to buy Milo BIG.

Price Markup Pricing.

Distribution Selected distribution, selected locations.

Promotion Mass promotion is needed to gain the customers attention.

Marketing Mix

Marketing Mix is the set of controllable tactical marketing tools that are product, price,

placement and promotion. The firm blends these tools to produce the response it needs

from the target market.

MarketingMix

Product

Price

Placement

Promotion


12/18

AMIGO

12

Product:

Flavored milk is a nutrient-rich beverage providing the same nine essential nutrients asunflavored milk, including calcium, potassium, phosphorus, protein, vitamins A, D and

B12, riboflavin, and niacin (niacin equivalents).

Our product is the flavored milk which will be introduced as flavored milk with Hi

calcium content.

Flavors

We are introducing it in five flavors including three traditional flavors including

Chocolate, mango and Vanilla, along with two new flavors namely Toffee

and Oreoas these will be the most liked among the rest of the flavors.

Size

We are only launching Amigo flavored milk in 200 ml tetra pack and 400 ml

Plastic bottle.

PackagingWe are packing our flavored milk in tetra pack and 400 ml stylish plastic bottle.

Tetra packaging is usually preferred because health and safety are directly linked

with the packing material used and people are much concerned about it

increases, secondly the shelf life of the milk and lastly it is easy to handle. The

400 ml plastic is introduced keeping in mind all these safety and health issues.

This bottle will be high quality air tight plastic bottle which will be as good as

tetra pack just to cater the people who would like to consume a larger quantity of

milk and are brand and packaging conscious.

Price

Price is the value placed on goods and services. Price is the amount of money and /or

goods needed to acquire some combination of another and its accompanying services.


13/18

AMIGO

13

The pricing objective of Amigo flavored milk is to capture the market share. This means

that we have topenetratein to the market by offering a competitive price. Therefore we

will adopt mark up pricing strategy.

Price of 200 ml tetra pack = Rs 25

Price of 400 ml plastic bottle = Rs 40

Price elasticity

Flavored milk is a product with relatively elastic demand, as the buyer will be

highly reactive to price change because there are close substitutes to the product.

Promotional allowance:We will negotiate with the retail outlets to let us put introductory stalls and

promotional sets to introduce the newly launched Amigo Flavored Milk to the

incoming customers and will then reward payments or price reductions to the

retailers which will be pre-decided because at the end of the day it is the retailer

who has to sell the product to the consumer and if the retailer is not motivated or

incentivized then it becomes difficult to sell the product at retail outlets.

Placement

CHANNEL AND DISTRIBUTION:

The marketing channelwhich we will also follow for Amigo flavored milk is the

consumer-marketing channel, which involves the producer, the distributor who

is the business partner of amigo, the retailer who obtains goods from the

distributor, and then finally the consumers who will get Amigo Flavored Milk at

the retail stores. It is an indirect marketing channelas it contains intermediary

levels. We are adopting indirect marketing channel because it reduces the:

Transportation cost.

It reduces handling issues.

Thirdly distributors have more links than the manufacturer itself so it enhances

the distribution.


14/18

AMIGO

14

Once the product is manufactured its consignment will be settled and negotiated with

distributors. The distribution channel that will be followed by Amigo is somewhat a

conventional distribution channel where the retail outlet is independent of the

sales it makes. We will have control over its distributors as they will have a contract that

binds them; consequently they will cooperate, but will have no control over the retailers

so they can charge any price they feel like.

Transportation affects the pricing of products, delivery performance, and condition of

the goods when they arrive- all of which will effect customer satisfaction. The

transportation medium used to deliver Amigo flavored milk to the outlets will be

through trucks. Distributors will be given a margin to work with in order to cover all

their transportation costs, expenses and profit.

Promotion

Our promotion mix of Amigo will be a blend of these two tools. ADVERTISING:

Our product will be advertised using both ATL (above the line) and BTL (below the line)

strategies. In ATL we will cover electronic media and print media. In BTL we will

advertise through billboards placed in the areas from where most of school going and

college going students past by.

Manufacturer

Wholesaler

Retailer

Customer


15/18

AMIGO

15

ATL:`

Electronic Media

Print Media

BTL:

Billboards/ Hoardings

Bus Branding

SALES PROMOTION

We will be offering free samples of our flavored milk in schools and colleges in break

time and after school and college times. We will also organize different sports events

and sponsor sports days in SEC a schools and colleges and promote our product by

setting up stalls in the campuses and distributing free packs to the participants.

Electronic media

Tv channels - AAG TV, MTV, THE MUSIK, PlayTV, Geo TV, ARY Music, Cartoon Network, Pogo,

Nickleodeon

Radio Channels- FM 89 & 91

Print media

Newspapers - The News (Disney Page, USmagazine), Dawn, The Nation, Daily Times, Jang

Magazines - Sunday Magazine, S+,

Outdoor Advertisement

Hoarding, bus painting, pole signs, streamers

Promotional material - calender, key chains

Point of sale material - leaflets, broachures,stickers, posters, standing banners

event sponsorship - matches, concerts, SportEvents.

Media Mix


16/18

AMIGO

16

Promotion Budget

Electronic Media& Print Media

TVC- 30% of the

budget

Radio Spot- 5%

print Media-10%

BTL

Billboards/Hoardings -15%

Bus Branding +polesigns + streamers-10%

Teaser Campaign-15%

School / CollegeCampaigns

School / College of Sec

A class&EventSponsorship- 15%


17/18

AMIGO

17

PROMOTION MIX STRATEGY

Since our product is a newly launched FMCG, thus we will adopt apush strategy.

Incentives will be given to the distributor to sell and sales volume through his efforts

accompanied by the advertisement and promotional campaigns. The distributor or the

wholesaler will then promote the product because they will get more profit margins by

selling our product and thus push the sales up by increasing sales to the retailers. In

order for the distributor to sell more he will have to give incentive to the retailer, thus

giving the benefit to the retailer as well in selling the product. In order for the retailer to

gain that benefit he will be motivated through the incentive received from the

distributor to sell this product to the customer through personal selling. This strategy

devised above will meet many goals of brand positioning, channel strengthening and

increasing market share and create brand equity.

Producer Wholesaler Retailer Consumer


18/18

AMIGO

REFERENCES

References

Kotler, P., Armstrong, G. 2006,Principles of Marketing, 11thedn, Pearson Education &

Dorling Kindersley, India.

Nestl, Our Brands [Online]. [Accessed 26th April 2007] Available from World Wide

Web:http://www.nestle.com/Our_Brands/our+Brands.htm

Nestle, Beverages [Online]. [Accessed 26th April 2007] Available from World Wide

Web:http://www.nestle.com/Our_Brands/Beverages/Overveiw/Overview+Beverages.htm

From-segments-to-needs. [Online] Available from World Wide Web:

http://www.bgateway.com/bg-home/bg-sales-and-marketing-planning-and-action/bg-

market-planning/bg-from-segments-to-needs.htm

Identifying valuable customers. [Online] Available from World Wide Web:


market-planning/pg-bg-identifying-valuable-customers2.htm

Kidder, H. 2006, The Marketing Mix [Online]. Available from World Wide Web:

http://www.associatedcontent.com/article/56164/the_marketing_mix.html,

Associated Content

Market-Research. [Online] Available from World Wide Web:

http://www.bgateway.com/bg-home/bg-start-up/bg-sales-and-marketing/bg-market-

research.htm

The-7-Ps-of-marketing. [Online] Available from World Wide Web:


market-planning/bg-the-seven-ps-of-marketing.htm

WIKIPEDIA. The Marketing Mix[Online].
http://www.nestle.com/Our_Brands/our+Brands.htmhttp://www.nestle.com/Our_Brands/our+Brands.htmhttp://www.nestle.com/Our_Brands/our+Brands.htmhttp://www.nestle.com/Our_Brands/our+Brands.htm

amigo flavoured milk

Documents