Marketing Analysis of Food Company

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.

1.0 Introduction

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

Strength Healthy product Skilful labours	Weakness New product
Opportunities new product	Threat Competitors

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

• GST
• Tax
• Income level

Economic factors

• Insurance rate

Social and Cultural factors

• Healthy and nutritious

Technology factors

• Availability of resources and technology
• Advance technology’s

Environmental factors

• 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.

6.0 Positioning

The above diagram shows where yummy kids places it price which is at c.

7.0 Product

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
Calcium	Fruity yogurt
Iced coffee	Meadow fresh

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.

8.0 Promotion

CC will have billboards, magazines and posters in dairy shops.

8.1 Objectives

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

8.3 Advertising

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.

9.0 Pricing

CC will allocate its price at low due it’s a new product in the market.

9.1Pricing Objectives

• Maximize profit
• Gain market share

9.2 Pricing Method

Hence, the cost of each tub of yummy kids:

Material$0.10

Processing cost$0.10

Labour cost$0.10

Total Cost$0.30

Profit margin $0.20

Add GST$0.10

Total cost of a tub of yogurt will be $0.70.

10.0 Distribution

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

11.1 Budgeting

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:

Expenses

Materials$20000

Processing cost$1500

Labour cost$15000

Fixed costs

Machines$10000

12.0 ETHICS AND SOCIAL RESPONSIBILTTY

1. Packaging will be biodegradable

2. Product will be thoroughly tested before introducing in the market.

13.0 Conclusion

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