Marketing Analysis of Food Company
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 1892 words||✅ Published: 2nd Oct 2017|
1.0 Calcium Company (CC) is a wholesale company and has long term presence plan in Auckland, New Zealand. They have invested lots of capital of launch a new product in a market. Calcium Company will be making flavored yogurt for growing kids and children. It has a unique product line which is currently in place. The company will be offering large variety of flavors. It has calcium and other vitamin and minerals in flavored yogurt.
This report will look at the SWOT and PEST analysis whereby it helps to make product survive in the market. Moving on, it will go into depth the benefits of the new product in the market.
In final report CC will try to launch successful product. Yummy kids will become a very trendy choice for children’s drinking milk and Calcium Company strongly believes that this will become a very meaningful and profitable investment for the future of children in our society.
CC was opened in 2006; it was making milk only and then later diversified into flavored yogurt. Since it made huge profit over the years so they decided to make the other profits.
They are launching a new product in the market which is flavored yogurt. Their target market is kids 5-14 year old children. It has high content of calcium
Objectives are as follows:
- To meet first year sales projections
- To grab market share within years time by 25%
- Plan to diversify other products in next five years time.
3.0 Situation Analysis
Marketing information helps managers to make better decisions about their management such as market size and market share.
3.1 Marketing Information
Pie chart 1
The above pie chart shows the market share of respective company.
3.2 SWOT Analysis
The SWOT analysis illustrates S+T (3) and W+T (2) so the introduction of the new product is feasible.
3.3 External Environment Analysis
Political and Legal factor
- Income level
- Insurance rate
Social and Cultural factors
- Healthy and nutritious
- Availability of resources and technology
- Advance technology’s
- Global warming, environmental issues. Changes in temperature can impact on many industries including dairy farming (U.K essays.com 2013).
4.0 Segmentation Strategy
4.1 Segmentation Variables
It looks at the cost which is involved in launching of the new product in the competitive market.
4.2 market segment profile
They are two competitors in market which is Fonterra and Goodman Fielder. At this stage they are very competitive in the market. So CC is trying to gain market share in the competitive market.
5.0 Targeting Strategy
The market will target the competitors. The competitors are Fonterra and Goodman Fielder. This market looks at the age group 5-14 years old. This age group needs calcium and protein in their diet for growth.
5.1 Rational and Strategy
CC will have differentiated product in the market for everyone.
The above diagram shows where yummy kids places it price which is at c.
The above yummy kids will attract the attention of kids because it’s so color and they name speaks.
7.1 Product Classification
Existing Milk product
Existing Yogurt product
7.2 Product Line and Mix
CC main product is milk which is the core base of the business later moved ahead with skim and diet milk and introducing drinking chocolate milk. CC company has a reasonable variety of product mix to present their retailers and customers also intend to introduce plain and fruity yoghurt in future.
7.3 Product Branding, Packaging and Labelling
Labeling: there is bears photo on the package. It will contain the ingredients and contents on the container.
CC will have billboards, magazines and posters in dairy shops.
To attract attention of the customer s in the market.
8.2 Promotion Mix
The primary objectives of the milk product yummy kids are to firmly establish CC company’s brand positioning as well as development strategies to the target market. Therefore objectives of advertising the yummy kids yoghurt are;
- Increase awareness & enlighten the importance of Protein Calcium in growing kids
- Provide information about the product
- Let the customers be aware that CC company is 100% New Zealand owned
CC will advertise their product on T.V at around children program time.
8.4 Sales Promotion
It will be promoted on TV channels in order to attract the attention of the customers.
CC will allocate its price at low due it’s a new product in the market.
- Maximize profit
- Gain market share
9.2 Pricing Method
Hence, the cost of each tub of yummy kids:
Profit margin $0.20
Total cost of a tub of yogurt will be $0.70.
10.1 Distribution channels
Wholesalers will deliver the product to retailers and then customers will buy the product from the retailer.
10.2 Factors affecting distribution channel
The factors which might affect could be cost of logistic department or they may not arrive on time to deliver the product.
10.3 Distribution intensity
It will be distributed to count down, packnsave and other diary stores.
11.0 Control Systems
CC company has budget set for their new product yummy kids. Company will focus on their budget to cater for the new product. Below is the sample budget of launching new product:
12.0 ETHICS AND SOCIAL RESPONSIBILTTY
1. Packaging will be biodegradable
2. Product will be thoroughly tested before introducing in the market.
In conclusion, Calcium is added to fruity yogurt in countries which is very popular with kids. Further research was also carried out on the population of Auckland especially focusing on the kid’s population (UK.Essay.com, 2013).
This report does not reveal any information of CC Company’s customers and their buying habits who live across New Zealand where yummy kids can be distributed to retails to increase market share and generate return on investment.
14.0 Reference List
Statistics New Zealand. (2011). Dairy Product Manufacturing Retrieved from http://businesstoolbox.stats.govt.nz/IndustryProfilerViewProfile.aspx?ProfileID=CC131
Statistics New Zealand. (2012). National Population Estimates: June 2012 Quarter. Retrieved from http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/NationalPopulationEstimates_HOTPJun12qtr.aspx
Thomadsen, R. (2007). Product Positioning and Competition: The Role of Location in the Fast Food Industry. Marketing Science, pp. 792-792-804. Retrieved from http://ezproxy.aut.ac.nz/login?url=http://search.proquest.com/docview/212253097?accountid=8440
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