product decisions and product mix

Document compiled by: TIMOTHY KUMWENDA; ULEMU MANDALAZI; DEBORAH NYIRENDA; TADALA CHIBWEZO; JULITA CHINSEUH; CEPHUS MHONE; LUSEKERO MWAFONGO

MARKETING REVIEW OF VEGA FOODS LIMITED

The success of a product, service, individual, business, organization, or even a city is based

on being perceived as unique. Look at any market leader and you’ll find they each own a

place in the consumer’s mind. They have positively differentiated themselves from the rest

of the competition. The differences usually vary in a number of elements.

PACKAGING

It is the process or activity of enclosing or protecting products for the purpose of

distribution, storage, sale and use.

Packaging is a very important aspect in business. It keeps the food products safe and in

good quality before they are used. It also holds the goods to contain them in a single

manageable unit and helps the consumers to identify goods from a certain manufacturer

easily. It also gives information about how to use the product safely. On the other hand it

helps to attract customers to purchase the products. It finally helps to transport goods

easily.

Packaging is done in different ways depending on the type of product. The most package

containers used are boxes, cartons, cans, bottles, jar, sachet, tubes, and aerosols. The choice

of packaging container depends on several factors which are costs, that is to say, products

which fetch low price are put into cheap containers. These are low classed products. High

classed products are packed in expensive containers.

Sterility is another factor. Products which are prone to bacteria and fungus growth for

instance pasteurised and some sterilized (juice, beer) products can give them longer shelf

life hence the use of aluminum containers as they are easy to sterilize. The extent to which

the flavor is affected by the container is also another factor. Plastic containers are known for

changing and leaching flavor. Research has shown that some nutrients in beverages reach

out through the plastic. For example, Fresh orange juice flavor that comes from special oil

can be lost if packed in a plastic. Therefore drinks that are very delicate in flavor would be


less suited to plastic containers and those that are not delicate can be packed in the plastic

containers. Color is also another factor whereby many beverages rely on the color attraction

of their products hence been put in the transparent container.

And finally the environmental friendliness is also another factor. In our days, manufacturers

are encouraged to be using the environmental friendly containers and this will make

containers that are hazardous to the environment to be rarely used.

PACKAGING AND ELEMENTS FOR PACKAGING PRODUCTS

Vega Foods Ltd uses almost all types and forms of package. However in some products they

use only inner pack and shipping package only and in some objects they use all types of

package materials. Below are products of Vega Foods Ltd and their types and forms of

package.

Pasta products

Vega Spaghetti and Vega Noodles

– Packed in plastic paper as

immediate package and carton as

shipping package.

Canned meat and canned fish

• Use cans as immediate container and cartons as shipping package

• They are packed in rectangular shaped and light brown tins

• Distinguishes the product from others. The tin (inner pack) is hard and the carton is

thick, this prevents the product from heat, damp and dust. The tin is small enough to

handle. The lighter carton makes transportation easier since it weighs less than other

materials.


• Cartons are light weight for easy transportation and also for easy assembling of the

products. Tins protect the inner product from heat, damp and dust and are shaped to

stand easily on the shelf for display and advertising purpose.

Beverages

Vega Instant Coffee

• Use sachets as inner pack, and packed in

big packet as secondary package and

finally in the carton as shipping package.

• One side of the packet is transparent to

help customers to see the contents in the

Packets.

Vega instant Creamer

• The product uses sachets as primary package and then packed in pairs in small carton

boxes for retail selling. The boxes are then packed in larger cartons for shipment and

wholesaling.

All the packaging materials for beverages are light for easy transportation and carriage and

the rectangular in shape so that it can easily stand on the shelf for display and advertising

purpose.

Snacks

Vega Biscuits and Vega chocolates

• Use small packets as immediate container. Packets are placed in plastic paper as

secondary package. They use carton as shipping package.


• The inner pack is thin to be pierced easily. On the other hand the packet is cream

coloured for easy identification and the lightness of the wrapping paper that acts as

secondary package makes it easy to carry. The carton helps to put together the

scattered dozens of biscuit for easy transportation.

Vega vegetables

Vega Tomato paste and Vega tinned

vegetables

• use tins as inner pack and the tins are put in

cartons as shipping package

• other products are packed in sachets as

inner pack and cartons as shipping package

• Tins and sachets protect the product from

damp and dust. Cartons put together the

isolated tins for easy transportation.

Cartons are lighter for easy carriage.

Edible oils

Vega Margarine

• Use sachets as inner pack, and cartons as shipping package

• Made of thick and big sachets which cannot be easily pierced by an object .The

sachet itself is Yellow, resembling the product .The thick Carton prevents the sachet

in a packet from been pierced by sharp objects. Cartons can also be easily

transported because they are light. Finally, the sachet can be easily arranged on the

shelf for advertising Purpose.

Dairy products

Vega condensed milk


• Use tins as inner pack, cartons as shipping package.

• There is no uniqueness in terms of shape of the tin. The tins protect milk from dust

and damp. On the other hand, carton put together the scattered tins for easy

carriage. Tin is small that it can be easily handled. In terms of display, it can easily

stand without falling and crashing.

Vega Powdered and Sweetened Milk

• It Uses sachets as inner pack and then carton

as shipping package. It is also packed in tins as

inner pack and cartons as shipping package.

• The sachets are very thick and at one corner

there is a mark showing where to cut when

ready to use. This differentiates it from other

packets of the rival products.


• The sachets are attached to each other’s end to make a line. This makes them

easily displayed by hanging them for display purpose. The cartons in which the

sachets are put for transportation are light and hard to protect the sachets.

The tins used for packaging protect the contents from substances that may affect their

quality e.g. dust, water. The tins are made in such a way that they should be able to stand

firm and upright on the on the shelf as a marketing strategy. They also use cartons as

shipping package. The carton protects its contents from physical damage that may occur

in the course of transportation.

BRANDING

The American Marketing Association (AMA) defines a brand as a name, term, sign,

symbol or design, or a combination of them intended to identify the goods and services

of one seller or group of sellers and to differentiate them from those of other sellers.

Branding is not about getting your target market to choose you over the competition,

but it is about getting your prospects to see you as the only one that provides a solution

to their problem.

Vega foods Ltd benefit from branding its products and also make both sellers and

consumers benefit from the concept of branding. Vega foods Ltd benefits from branding

in such a way that branding improves value to their products. For instance, most

consumers would perceive a canister of Vega tined fish as a high quality product.

Pic.1: unmarked tin and Vega tinned fish

But the same Vega tined fish in an

unmarked canister would likely be

viewed as lower in quality despite having

the same contents. Therefore brands

helps to say something about product

quality and consistency in the features of

a product and enable customers to be

loyal and confident to a particular

product.


Branding also provide a marketing advantage to a seller or a distributor of a product. For

example, in Malawi, H. Adams wholesaler, branding provides the basis of market

segmentation by targeting on individual consumers who use Vega Foods products.

Vega Foods Ltd adopts a kind of brand called family branding. This involves selling several

products having a single majestic name (brand name) signifying a line of products. For

example, there is Vega Tinned Fish, Vega Margarine, Vega Spaghetti, Vega Coffee, and

Vega Condensed Milk. There are often economies of scale associated with family

branding since several products can be efficiently promoted with a single advertisement

or campaign.

Brand Elements

A manufacturer has several options when it comes to brand sponsorship. The product

may be sold to resellers who give a private brand or may be launched as a manufacturer’s

brand; this is the case with Vega Foods Ltd. The main aim of branding a product is to

create that individual niche in the consumer’s mind and owning it. More than just

marketing, branding is the entire effect that creates a memorable identity in consumers’

mind. There are several elements that make up such an identity. For instance, Vega Foods

Ltd adopts elements like: Company and product name; Logo; Graphics; Colour; and

Tagline.

Name: the company uses Vega Foods as its name and also applies Vega from the

company’s name as the first word to all products signifying a single line of products

(family brand). In 2005 when Vega Foods was born in the market, people did not have

any distinctive picture in mind to associate it with. Now that Vega Foods is fully

established, what's the most important asset in their company? The name Vega Foods. If

everyone at Vega Foods Corporation disappeared overnight and Group 7 had a bunch of

capital and could start a new company with the name the same name Vega Foods and its

entire brand marks, don't you think we would do okay?

Of course we would, because the name Vega Foods on its own holds so much of the

company’s value.

Logo, Graphics and Colours: As it can be seen in the picture, Vega Foods uses an oval

shaped nut that disband some bright light rays with the words Vega and company tagline


on it. The light rays on the logo bears testimony to the origin of Vega name: the star

called Vega.

Pic.2: Vega Foods Ltd logo and company slogan

The effect of colours arises both from

cultural connections and physiology, and

these influences customer attention and

it is the brightest colours that can easily

attract attention and enforce customer

behaviour.


Sight is the predominant sense for humans’ exploration and understanding the world,

starting from the early ages. It often overrules the other senses, and has the power to

persuade people against all logic. These features logo, colours and graphics are everything

that people first notice in products and is what immediately make Vega Foods stand out

from its competitors.

Pic.3: Vega Foods products with bright colours

The bright colours red, green and yellow in

all Vega products were chosen to

represent health and nature at the same

time attracting consumer attention. These

are the qualities Vega Foods created in

order to achieve the desired perception in

the mind of the consumer.

Taglines: The food market is filled with over worked catchphrases. However, Vega Foods

believes that better life starts with better food. This gave birth to their brand slogan 'Better

food for better life! Representing attractive premium products that are healthy, delicious

and making a promise to deliver everyday eating enjoyment. This promise spans all eight

product categories: pasta; edible oils and fats; dairy products; canned meat; canned fish;

canned vegetables; snacks; and beverages.

People simply trust brands, develop strong loyalties, buy them, and believe in their

superiority. Branders and advertisers of Vega foods have successfully observed this

emotional connection and pushed the limits of branding and made Vega brand into what it is

today. Even though they managed establishing such a brand, Vega Foods Ltd has also some

downfalls.

In food and beverage industry, taste is a difficult sense for most brands to incorporate.

However, brands that can incorporate taste can clearly build a very strong brand platform.

Vega Foods Ltd fails to incorporate consistency in an element of taste in all its products,


therefore making it hard to be distinguishable. For example, taste in Vega beverages like

Vega coffee was not made with any distinguish that can make it stand out from other coffee

companies in every market and every cup of coffee they serve.

Family branding facilitates new products introductions by inducing a familiar brand name to

customers which lead to product acceptance. Family branding also imposes on the brand

owner a greater burden to maintain consistent quality. If the quality of one product in the

brand family is compromised, it could impact on the reputation of all other products. For this

reason family branding in Vega Foods can be disputable whether it was a right strategy on

the market or not.

To succeed in branding you must understand the needs and wants of your customers and

prospects. In other words, your “brand” is your image as seen from the outside. Your brand

is who you are — your strength, your integrity and your reputation. It’s not simply how your

logo is displayed, but rather the emotional and intellectual response your brand elicits from

your target audience. It's therefore important to spend time investing in research programs,

defining, and building a brand. After all, your entire brand is the source of a promise to your

consumer. It's a foundational piece in your marketing communication and one you do not

want to be without.

LABELLING

This is the process of printing information appearing on the package. Labeling is very

important on a product because it helps in easy identification of the product, its contents

and how to use it safely. It also helps in product promotion and supports its positioning.

Vega foods limited does its labeling on the products by including nutritional facts, which

shows nutritional content of a product. For example Vega pilchards contain vitamins,

proteins, calcium and iron among others. Again, Vega’s labeling includes a barcode which

helps in pricing of the product and stock taking. Another notable labeling


element on Vega products is the presence

of diagrams on every product. For

instance, cows on milk packages, pilchards

on the tinned fish and wheat on spaghetti

among others. Furthermore, the labeling

includes the manufacturer of the

products, in this case Vega foods limited

company based in Singapore


Again, Vega products have a logo in red and green as basic colors that goes together

with the catch phrase “better foods for better life”. Lastly, Vega Foods have the “haalal

sign” to symbolize that they are edible to all members of the community be it Musilms,

Christians and Bhuddas among other religions. The inclusion of its name, diagram and

nutritional information on all of their products helps Vega customers to easily identify the

products and also has an advantage to surpass their competitors, through their use of

the ‘haalal’ sign because other religions strictly pro…... Apart from these, it also uses

bright colors on all their products which make their products easily seen by customers

when shopping. This means that Vega uses labeling to position its products and this has

helped Vega to market its products.

PRODUCT MIX

This refers to the product lines and items that a particular seller offers for sale (Kotler). A

company can offer its products and services in four main dimensions namely width,

length, depth and consistency.

Product width

This refers to the number of product lines that a company sells (ullaya handout). The

products are totally different in terms of name and content though they may sometimes

fall under the same category. Vega Foods as a company under discussion has a product

width consisting of daily products, snacks, canned fish, canned meat, pasta, edible oils

and fats, vegetables and beverages among others. Vega foods as a company which has

been in the industry since 2005 has a wide range of product width because it already

gained a market share through its heavy promotions. Therefore it has been easier to

introduce new products within the years.

Product length

This pertains to the total products or items in the company’s product mix (kotler). They

include all the products that fall under the same product width, but are differentiated in

terms of contents, flavors and volume. The product length of Vega foods include milk


which falls under dairy products as its width, it also contains biscuits which takes snacks

as its product width. Sardines, pilchards and mackerel form another product length of

Vega under canned fish as a width, canned meat is further lengthened in terms of beef,

chicken, Vienna sausages and luncheon meat. Vega also extends its vegetables width into

a length which includes peas, mushrooms, and beans. Beverages, as one of their

products are offered in coffee and instant creamer but Vega offers only a single product

under edible products and fats which is margarine. The length usually becomes longer to

suit needs of the consumers who have different tastes for different products.

Product depth

It refers to the total number of variations for each product (handout). Some products

have a shorter depth while others have a very long one. For instance, Vega dairy

product’s milk (length) has a depth consisting of powdered milk and sweetened

condensed milk, canned fish is offered in chili and tomato sauce flavors. However,

products like noodles under pasta (width) have flavors like chicken, beef, vegetable and

prawn whereas spaghetti’s depth is based on volume which is one kilogram, 500grams

400grams and200 grams.

Product consistency

This refers to how closely related product lines are to one another in terms of use,

production and distribution(handout).Vega foods limited has a consistent product mix in

such a way that all the products are all closely related.

Vega has seen an increment in the number of its customers because of its supply of a

variety of products. This also helps Vega to easily yield customer loyalty because

customers almost find every food they need. Though this is so, Vega’s inability to fill the

other product length and breadth makes it unable to market at full capacity because of

the absence of other customers’ choice in terms of size, content and flavor.

Most organizations know little about marketing. Therefore, you can get a leg up on your

competition by knowing who you are as an organization and by being able to articulate it

clearly. Whether you are part of a non-profit organization, a downtown association, or a

growing business, you should be thinking about branding. Brand yourself well. Take


control of your image. The next time your name comes up, it will conjure the brand

qualities you created and achieve the desired perception in the mind of the consumer.

product decisions and product mix

Business

products of vega foods

shipping package

immediate package

forms of package

beer products

products theyuse

highclassed products

primary package