Customer Intentions In Buying A Premium Product Industry Marketing Essay

Organic food consumption between customers is getting famous these days. The approach has appeared in present’s modern world as a result of the raised in knowledge of the significance to sustain a healthy lifestyle by consuming foods without insecure additives, preservatives, flavor as well as coloring. Organic food is manufactured without utilizing mainly conventional pesticides; fertilizers prepared through artificial items or sewage sludge; bioengineering; or ionizing radiation, consequently supports the healthy food attributes. Though, found on the analysis of literatures, there were a number of discrepancies in the earlier research findings. In terms of perceived value towards organic food product, the majority of the research found positive as well as not less also ascertained negative outcome primarily because of the lack of some special value in the eyes of customers. For example, high in cost, not value for money, satisfied through the presented conventional food, uncertainties on the product warranty as well as ambiguous assertions of the organic status. The research plans to recognize the perceived value factor as well as its impact towards the consumers’ intention in buying a premium product in the food industry.

Our way of life has modified in such fast paced world as contrasted to some decades ago. Nowadays, more and more persons are caught up in a continuous cycle of purchasing as well as throwing away, observing consumption as a means of self-fulfillment. Consumption is the basis why anything is manufactured. Demand towards products is directed by handiness moreover habit that in returned is difficult to change. In fact customers has slight information of the link among their consumption preferences as well as the environmentally outcomes. Malaysia which is at the intermediary phase of expansion is dealing with incredible challenge in ensuring sustainable growth. According to Aini M.S (2003), “Solid domestic waste is one of the key environmental setbacks facing by the municipalities in the country principally inside the urban area”.

“The increase of the environmental awareness has had a thoughtful result on customer behavior, with the green product market developing at an outstanding rate”, (Bhaskaran et.al, 2006). Consequently, in the ancient times there have been an enhanced of production as well as consumption of organically-manufactured products which is seen as having fewer effect to the environment. Within December 2000, the National Organic Standards Board of the United States Department of Agriculture (USDA) created a national standard for the word "organic." Organic food, described by how it cannot be prepared rather than how it can be prepared, should be manufactured without the utilization of sewer-sludge fertilizers, mainly synthetic fertilizers as well as pesticides, genetic engineering (biotechnology), growth hormones, irradiation as well as antibiotics. Various ranges of agricultural products can be manufactured organically, including produce, grains, meat, dairy, eggs, as well as processed food products. "Organic" does not indicate "natural." There is no legal description as to what represents a "natural" food. Though, the food industry applies the word "natural" to point out that a food has been simply processed furthermore is preservative-free. Natural foods can contain organic foods; however not the entire natural foods are organic.

Apprehensions associated to the atmosphere are evident in the increasingly environmentally aware market place. “Over the years a greater part of customers have understand that their buying attitude has a straight impact on numerous ecological troubles”, (Laroche, 1996). The expansion of organic agriculture is observed as element of the rising marketing trends where customers demand to identify what advantages a food could bring before crafting a buying intention. Even though the demand for organic food is yet optimistic, there are symbols so as to markets are growing as well as expansion rates over the some preceding years reduced to lower 10% (Firth et.al, 2004). With respect to growth potential of customer demand as well as its limits various researchers have recognized furthermore leveled motivations for purchasing organic products moreover have usually demonstrated an optimistic image of powerful demand. Person that buy organic food has been categorized within four groups respectively (Anne Davis, Albert J.Titterington and Clive Cochrane, 1995): greens; person that are affected with the atmosphere, food phobic; individuals that concerned regarding chemical residues within food, humanists; individuals that are preoccupied with factory farming processes as well as hedonists; individuals that consider so as to a premium products should be good as well as significantly taste good.

The customers identified that organic food has the value as well as advantages and therefore they are ready to pay extra for the cost. Hutchins as well as Greenhalgh (1997) noted that about half of the customers of their sample were ready to pay extra for organic foods, the greater part of them reaching levels of 10-20%. Meier-Ploeger as well as Woodward (1999) stated that 52% of the German customers of their sample were ready to pay extra for organic fruits as well as vegetables, 34% for animal products as well as 39% for grain products. Canavari et al. (2003) stated that the intended premium price for organic peaches as well as apples was accepted by 65.8% of the Italian respondents of their survey. In the same way, Gil et al. (2000) said that actual Spanish organic customers were ready to pay a premium of 15-25% for organic food.

This research tried to expand understanding related to customer intention towards organic food product utilization moreover to perceive whether there is any potential such might have for changing their attitude. The underlying principle for carrying out such project is that no chances of any products to be well acknowledged moreover no conservation program could be booming if there is not sufficient support presented from the public, on the other hand good it may be. In brief, consideration for the atmosphere could come only from knowledgeable public who are aware of, as well as entirely committed to their rights to a quality health as well as atmosphere. On the other hand, before any attitude can be transformed, it is essential to calculate the present condition of customer understanding as well as awareness. Consequently customer’s behavior, intention towards organic food products, eagerness to compensate for organic food product as well as intention to buy organic food will be the key outline of the study.

The objective of this research is usually to realize the behavior of local customers on their intention towards purchasing organic food product. Such customers are amongst those that have finished their buying in conjunction with organic product, customer that never buy any organic product moreover those that are in longer time offered themselves as an organic food purchasers as well as customers. Particularly the study is attempting:

To increase understanding about customer behavior towards organic food product

To scrutinize the causes which may effects the intention of purchasing organic food product

To discover factors which might affect buying intention of organic food between customers

The basic purpose was to better recognize customer motivations for purchasing organic food products in order that organic manufacturers could build up further valuable strategic marketing planning.

Research associated to customer behaviors as well as preferences for organic products is extremely undetectable (Chinnici et al.,2002). Outcomes of researches assured that customers have optimistic bevaiors towards organic products where one of the mainly widespread stated cause for buying organic products was it is recognized as healthier as compared to conventional substitutes (Chinnici et al., 2002; Harper and Makatouni, 2002). In previous research the majority respondents are illustrated as white, female, professional as well as younger (Harris, 2000), though such traits cannot be used across the entire studies because the reactions towards organic food products alters in relation to countries environment, stage of awareness, product accessibility as well as attitude transforms. Customer behaviors to organic food have as well been discovered in a little amount of qualitative studies (Nielsen at al., 1998; Torjusen et al., 2001). Customers do not all the time purchase sustainable products as effects of environmental alarms or to advantage the community or because of personal faiths however mostly to grant precedence to health, to be an element of the societal group, to differentiate from various furthermore to realize the requirement to test latest technologies (Vermeir and Verbeke, 2004).

While near the beginning of 1965, customer’s perceptions towards pesticide utilization in farms were discovered (Bearler and Willits, 1968; Sachs et al., 1987). Methods applied to investigate such topics have been differed, comprised mail as well as phone surveys. In proportion to the research, there are amount of causes so as to customer decide to buy organic food products, in addition to several barriers. Causes of purchasing could be assembled according to common as well as commodity-specific concerns (Yiridoe et al. 2005). Instance of concern comprises food safety, human health, environmental effect, while commodity characteristics contained taste, freshness as well as packaging (Yiridoe et al., 2005). Surveys have recognized further positive characteristics so as to customer relate with organic food products that comprise advanced taste (Davies, 1995), they are good for atmosphere (Lea and Worsley, 2005), as well as they are enhanced for animals (Goldman and Clancy, 1991).

Do you expect to consume organic food?

Do you would like to buy organic food products?

Do you plan to consume organic food?

What are you intentions when buying premium organic products?

Do you try to consume organic food for long term health benefits?

Are you satisfied with the organic products?

Does your family prefer halal products?

Do you believe that organic products have more freshness?

Do you believe that Organic products have superior quality?

Do you believe that Organic foods are natural food products?

Do you believe that Organic products are tastier?

Are you intend to buy organic food produce within the subsequently fortnight?

Do you think that Organic food has more nutritional value than conventional food?

Are you really worried about food safety because of your concerns with animal diseases for instance bird flu, influenza H1N1?

Quality and safety of meat nowadays concerns you?

Do you think it is important to know well how to eat healthily?

Do you prepared to leave a lot to eat as healthily as possible?

Are you alert to changes in health?

Do you take responsibility for the state of your own health?

Do you consider yourself very health conscious?

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The Same Principal Product Or More Broadly Marketing Essay

Industry – Is a group of firms producing the same principal product or more broadly, a group of firms producing products that are substitutes for each other. (Johnson et al, 2009). This report is about the Simulation exercise which took place as a part of Strategic management subject. It starts by explaining what the simulation exercise was about and how the firm in which I was involved as part of my group performed.

The Simulation exercise took place for the Automobile industry. The industry is very profitable but competitive too. All the firms involved need to be well informed about what’s going on in the market and come up with various strategies so as to make sure that the business keeps moving ahead.

In this simulation exercise, our firm was Firm G. we were three in our group. Naima, Christine and I. There were a total of seven firms in this industry, Firm A to Firm G. Each firm had its own members to run it.

All the firms initially started with the identical situation or scenario. All had same amount of income, sales, market value, stock value and also production capacity. And all had the same vehicle classes too; they were The family, The Economy and The truck. There were other vehicle classes as well like Minivan, Sports, Luxury but this was up to the owners of the firm to introduce them during the simulation period.

The simulation exercise took place for the duration of four periods in which all the groups had to make various decisions for their respective firms. The decisions were to be made on the marketing, distribution, manufacturing, technology, concept creation and product development areas.

The objective of this game or exercise was to develop and implement a comprehensive strategy that enables the firms to maintain long term profitability in the context of an increasingly competitive and changing environment.

Before making any decision, a business has to do some research on its industry’s business environment. There must be some kind of industry analysis to help the owners of the business to make a wise decision that would help the business expand. Hence the automobile industry is no different. The following is the industrial analysis of the Automobile industry:

This tool usually helps people to analyze the external environment or in other words the MACRO environment of a particular industry. It helps the firms to know what’s taking place in the market and assists them in creating strategies that go hand in hand with these factors. The below is the PESTEL of the Automobile industry:

Changes in the required age to apply for driving license.

Taxes and duty on the manufacture of vehicles.

Changes in the fuel prices.

Changes in the exchange rates.

Disposable income of the people in the society. (increase or decrease)

Different people having different tastes and preference.

Different people opinions about car culture. What type of car goes with their image.

Different age groups like different vehicle models like teens would like sports and a business person would want a luxury.

Availability of E-commerce to let people get more information

The plant capacity and efficiency in production process.

The safety of the vehicles manufactured.

Waste management for the scrap from production.

Pollution control from the fumes produced by the cars.

Energy consumption of the vehicles.

Noise created by the cars. (engines, exhaust pipes)

Laws and regulations like the minimum wage and health and safety of the workers.

Laws on mergers and acquisition in the automobile industry.

Control on the type of competition like monopoly.

Michael porter’s five forces framework was originally developed as a way of assessing the attractiveness (profit potential) of different industries. (Johnson et al, 2009)

This tool is really helpful in analyzing whether the industry is attractive enough and profitable enough to enter. As there are many players (the seven firms), it is good to know the key players power so as to plan a strategy that helps to overcome these influences. The following are the five forces analysis of the Automobile industry:

As this automobile industry is already on the run and the firms are already the established ones which already have a market share, their suppliers, distributors and their own customer segments, it is difficult for a new firm to enter the market until and unless it is ready to incur high costs to be in a position which is currently enjoyed by the existing firms (Firms A to G). So the threat to entry is low.

The cars provided can be substituted by the available public transport, however most people consider having their own private transport which is also convenient for them and their families. And the automobile industry provides them with the opportunity to have a safe and efficient transport at their hand. Hence the threat of substitutes is low.

The power of the buyers or customers in this industry seems to be high. As there are many firms producing the same products, the customers have a choice to choose the product and the firm that satisfies its preference the most like the price, quality, speed, interior, discounts offered.

As this Automobile industry consists of limited number of firms i.e. seven firms in total, the suppliers don’t have that much power as the firms are few. The firms have an influence on the suppliers because they know that they are the only ones to which these suppliers are providing their supplies.

The overall intensity of the competition is high. All the firms in the industry are targeting the same customer segments. And all of them monitor each other’s performance closely so as to plan and be ahead of the competition. There is existence of price wars as each firm try to adjust its prices to attract customers and there is also the introduction of new products as well. Therefore the competitive rivalry is high.

The SWOT analysis helps the firms to know their strengths and weaknesses. It tells them about what threats they have to overcome and what opportunities are available to it. The below is the SWOT analysis for the Firm G.

Already established name and brand.

Already have the market share in the industry.

Technological capabilities.

Less experience in the automobile industry.

Less aggressive to competition.

A chance to introduce new products in the market. (concepts)

A chance to upgrade the existing products.

Able to reduce prices and market the firm by using advertisement and promotion.

Able to add development centers to be used in future production.

Competition from other existing firms.

Capability of others firms to introduce new products and lessen their prices.

To make decisions on how much to spend where or in which areas like advertisement or production.

The fluctuation of market share in the industry.

Our Firm had three vehicle classes:

Gas, a Family car.

Go, an Economy car.

And

Gone, a Truck.

The below is the performance summary with which our firm started operating:

Firm G

Sales ($)

$15,278.3

Sales (000's units)

945

Market Share ($)

14.3%

Market Share (units)

14.3%

Net Income

$523.5

Cum. Net Income

$523.5

Stock Price

$26.60

Market Value

$13,302.5

Return on Sales

3.4%

Return on Assets

6.4%

Firm Preference

14.3%

Dealer Rating

58

COGS

76.1%

Capacity Utilization

92.4%

Debt

$5,553.0

Stock Issue/Purch. %

0.0%

Note: Dollar amounts are in millions.

In the first decision making, the aim was to increase the firm’s product awareness and so the main aim was marketing our products through advertising and promotion.

Hence the corporate marketing in all the four regions (North, South, East and West) was increased. Our firm also increased PR (Public relations) and targeted the value seekers and families segments for mail targets. The direct mail service was also increased.

In the Product’s decision we adjusted the Manufacturer’s suggested Retail Price (MSRP), reduced the discount rate increased promotion and advertising. For the family class, our theme was safety. Quality for Economy class and Style for the Truck class.

The dealers in each four regions were increased and their training and support activities also went up.

As our firm was advertising more, it was forecasted that sales would go up and hence we increased our firm’s production capacity by 500 and also the vehicle production.

As our firm had increased the awareness of the vehicles in period 1, there could be seen increase in the sales of our firm. The product performance and summary are attached at the end.

For the second period, the same objective was applied, to increase awareness of our vehicles and so we again increased our budget on the advertising and promotion.

There was also a minor upgrade of the Family class vehicle Gas. A little adjustment was done on the size and the performance and also the attributes of the car in terms of the interior, styling, safety and quality.

As our firm was going through the industry news, we got the information that there were new customer segments and also vehicle classes in the market and hence we took this opportunity and created a new concept or added a new vehicle class in our portfolio. The new class was the Minivan and our target customers were the family. We named our vehicle as Goofy- The perfect family car for all. It would take 3 years to introduce it in the market.

As we had introduced a new concept, we also decided to add one development centre to help in manufacturing the vehicles.

In the third decision our firm had to seriously consider the expenditure. It was found out that as the firm was spending more on the advertising and promotion, the expenses were becoming more and hence this affected our income. We had managed to increase our market share but on the other hand we had an income which was showing a negative signal.

And so in the third period of the simulation exercise, we decided to enter some decision on the financing section so as to raise some capital. We issued bonds for $ 3 M and stock for $ 2 M.

We also paid our dividends for $ 80.

In the marketing section, we adjusted some prices and discount rates for our three vehicle classes and increased our dealers in the four regions.

This was the last period in which decisions had to be entered. As our Firm had introduced a new vehicle class in the market, Goofy, the minivan, the performance of the firm looked to be promising.

The marketing of the new vehicle was decided and also the other three existing vehicles. The family vehicle Gas was really doing well in the market as the sales were showing a positive trend or growth.

After the fourth round was played, the simulation game came to an end. When viewing the results, I found out that our firm had performed well. It had a large market share than it’s competitors and also had four vehicle classes. It was the only firm having introduced the minivan and hence it was enjoying the customer segments related to the vehicle.

The overall performance was good as the sales were increasing. However as our firm was spending heavily on the advertisements and promotions, our firm had gone into a negative income. But as the trend of our products is increasing and with the new vehicle introduced, our firm will be able to cover up those costs.

This simulation exercise was a really interesting exercise for me. At first I had no idea of what we as a group are supposed to do or how to go about making decisions. But once I read the manual and our tutor explained, I found out that it was a very good way of learning and putting our theories into practice.

I really enjoyed making various decisions with my colleagues and now I have an idea how the business people have to think and decide on what strategies to choose to keep their business on the run.

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Low Involvement Product Is A Household Cleaning Product Marketing Essay

In the current easy we will described the high involvement product - a good food, and the low involvement product - a household cleaning product. The good food can be considered a high involvement product because it is extremely important to ensure that a person eats healthy food. When I choose the food, I am able to choose only after long and careful consideration what product will be the most essential. Important purchases require more time, attention and efforts.

Low involvement product is a household cleaning product, because there is no need to pay a lot of attention to what I am buying. To the low involvement products there is not paid a lot of attention, because people know the specifics of what they have already bought and that the condition of the low involvement product is not so important. This product is not vital, as to buy it is a every month routine. As a rule, when a person considers buying the low involvement product, he does not pay a lot of attention to it, he just takes it and pays for it. For a person the low involvement product is not important or vital, it is just a basic need that does not require the additional attentions and a lot of time to think.

The differences between the ways I went through the purchase decision processes for the two products. When choosing the high involvement product - good food, I have devoted all my attention and knowledge to choose it. As a fact, when buying the good food, I was highly involved in the purchase, as there were significant differences between brands. I had to choose the food carefully, because I know that this product is vital for me and very important for my family. Spending extra time on choosing it, was worth it, because I was able to choose the newest product, see the “best before” date, see the quality and choose the best price among the different amounts of it. Choosing the good food is a complex task.

When choosing the low involvement product- a household cleaning product, I have chosen it and did not think about outcome, as I was familiar with this product and decided to buy it, as I have been doing this for years. When visiting the supermarket, I have made a list of what I had to buy. With the help of the list, I was able not to forget about each thing I need, even if it is basic. Choosing the household cleaning product was easy, as I have done it for many times and I like its quality and price. All in all, low involvement products, as a rule, do not have complications or cause any problems. IT is easy to choose them and to buy them.

Being the marketer of both of the two products, it will be essential to explain the understanding of the Model of Consumer Buying Behavior for the two products.

Under the purchasing behavior (including buyer behavior, consumer behavior), it refers to the behavior of the buyer regarding the sale of goods. The behavior of the sale of goods, from the purchase planning, purchase negotiation, makes the purchase; to post-purchase behavior is highly variable. According to Marketing strategy (2010), the buying behavior among merchants that also do business with the solicitation of offers and / or long negotiations and possibly also in buying bodies, is connected, and sometimes differs significantly from the purchasing behavior of non-traders, be they government agencies, often on the basis of tenders to decide, or whether they are consumers with very different behavior patterns. More generally, however, characterizing the concept of consumer behavior is encompassing all the individual actions can be associated with the purchase or consumption of economic goods observed, according to Business plans and marketing strategy (2010).

As a fact, the post purchase behavior is much more active of those, who purchased the high involvement goods. The behavior models are reflected in the purchasing of low involvement and high involvement goods. The first model, the stimulus-response model (RS model), comes from the early behaviorism, which is located in the black box model of psychology as a basis. It is greatly simplified in a direct link between a stimulus and the response, which is, therefore, a cause-effect relationship. This model was then extended in meaning by the Environmental neo behaviorists of psychological behavioral model, and the SOR paradigm for the "human factor", the organism, according to Marketing strategy (2010). This particular extension is often expressed through the intervening variable. It is admitted that an individual and his personality through his many influences and environment, has been characterized. This was manifested in the individual environmental study, and must be targeted in order to be effective again ultimately affecting behavior.

There are distinguished four classic types of purchasing behavior: extensive buying behavior, real purchasing decisions, cognitive participation and information needs are great, and the decision-making takes a long time; These are mostly high-quality, durable goods; habitual buying behavior. Habitual behavior, the search for alternatives is to be avoided, not responding to stimuli practically and this was included primarily to consumer goods; limited purchasing behavior; a limited selection of products, without favoritism; impulsive buying behavior; spontaneous affective reactions at the point of sale.

In addition, a fifth special type of purchasing behavior is known:

Variety-seeking consumer behavior – this can be related to the high involvement goods. It is considered rare, because it has unclear transitions, because the change request often results in "impulsive", so in some ways it is not "real". This classification of purchasing behavior is not analogous transfer on the consumer as a whole. A decision maker could be forced by external circumstances, in a very short time to make choices, as can also happen in the case of purchasing high involvement goods, such as good food.

The determinants of the consumer’s behavior have intrapersonal or psychological factors and interpersonal and social factors influencing the decisions. In case with the low involvement goods- household cleaning product it can be seen, that a person, having chosen the appropriate product thanks to the effective commercial and true results, does not want even think about any other product and spend his time of doing research in the low involvement products, as the particular household cleaning product meets all the requirements, according to Business plans and marketing strategy (2010).

All in all, marketing influences the personal decisions a lot, as people who take into consideration the useful advertisements, in future choose the low involvement goods automatically. And considering the high involvement goods, in this case there will always be certain preferences and the commercials not always will be able to influence effectively on the choice of a customer. Some people can not be influenced by the marketing and promotion of the goods.

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Key Principle Of Marketing Strategies Of The Product Marketing Essay

The company has commitment and strenuous effort to provide the consumers with best quality for MILK O SODA drink products in a convenient and unmatched displaying manner, MILKOYUM will become a success story of business growth in United Kingdom. At moment, we will have more than fifty employees who will work in the organization. At the stage of introduction, we introduce a new and unknown to the buyers. Sales will be small, the production process will be new, and cost decrease from side to side economies of size or experience curve have not been realized. MILKO O SODA will be manufacture according to the consumer needs and wants. MILK O SODA will offer variety of taste for their customer according to their taste; it will give more choices to the customer to choose according to their taste. Promotion stands for the various activities the company undertakes to communicate and promote its product to the target market. Thus company has to hire, train and motivate sales people. It has to set up communication and promotion programs consisting of advertising, direct marketing, sales promotion and public relation. Company must identify, recruit, and link various middlemen and marketing facilitators so that its products and services are efficiently supplied to target market.

Mission Statement

To supply delicious, nutritious frosty drink without sacrificing healthiness and well-being.

Vision statement

To meet the needs of our customers

we focus on our customers as our clients

We believe in using state-of-the-art technology and science to deliver reliable and dependable functional drink products that can change and save lives

We will continue to integrate our core values of health, well-being, fitness, integrity, passion, and life to embrace and exceed continuous improvements in health and well-being

The core values, will known as the Spirit of MILKOYUM within the organization have not changed over the generations.

We want to introduce MILK O SODA in the market, because we want to serve good services to our customers for product development.

“To be the premier company that provides soda milk to all age groups.”

To develop & deliver most innovative products.

To manage customer’s experience.

To deliver quality service.

To establish competitive advantage.

We first use our personal contacts to attract maximium customer.

we provide goods and service to the people who visit our branch.

We will prolong to add our core values of health, well-being, fitness, truthfulness, passion, and life to embrace and exceed continuous improvements in wellbeing.

Milk O Soda company target is these types of users:

Age Groups: Kids, teens, working adults

Business class

Labor class

Employees

Families

Students

Quality oriented

Price and quality oriented

Price oriented

CEO

Director

Director

Director

Product G.M

Product G.M

Product G.M

Product G.M

Manager

Manager

Manager

Manager

Asst. Manager

Asst. Manager

Asst. Manager

Asst. Manager

Operatives

Operatives

Operatives

Operatives

CEO: (Chief Executive Officer) will check the work of Directors and control the Administration department.

The director will Control the company’s marketing and observe in which Location Company has new outlet.

The second director will Control the company’s financial position and company’s accounts.

The third director will Control the technical environment of the company.

For controlling the venture manager, sale manager, marketing manager, operation manager, and account managers with subordinates are working.

In our industrialist, managerial team following members will include:

Manager

Sale Manager

Marketing Manager

Account Manager

production Manager

supply and distribution Officer

design and division

Research and development

Milkoyum will operate the business in this way that it will introduce the beverage brand to England city and it will start its business before testing its beverage product.

After manufacturing MILK O SODA, we will do an internal test of the product it will give optimum response.

The employee of the company will appreciate the quality, taste and benefits of the product

They will give reasonable perceived value to the product

During the external testing we will test milk o soda by some specific persons for example by teachers, doctors, students and shopkeepers.

After testing we will come to know that most of the people like the product which will help us to move forward steps.

Product will have very distinctive name, symbol or design. It name will be MILK O SODA by the company MILKOYUM.

Product will be packed in disposable bottles.

Product will have all features and benefits detail in colorful instructions for easy understanding to use it.

It will also show the price of the product without sale tax and inclusive sale tax price.

MILOYUM milk o soda package will be properly packed with a label.

Label will give some important information about the company ,that recognize the color of company brand

Label properly guides the customers to open the bottle and how to utilize it.

We are segmenting the market into these levels and introducing it according to the need of the users of soda and milk because soda and milk is used by almost everyone in United Kingdom to refresh themselves. So we are segmenting the market through these points.

The behavior of the users are different types because there are different users in the market and there skin problems are different nature

Wanting quality products at an affordable price

Hygiene conscious

Health conscious

Style and image conscious

Soda and milk lover

According to psychographics market is divided in three major segments that are,

Upper class

Lower (price conscious)

Middle (price and quality conscious)

Upper (quality conscious)

Age

Gender (M&F)

Job holders & professionals

Family

The geographical we are covering

urban areas specially

Rural area also

In the urban areas of United Kingdom, almost all types of related outlets exist.

a. Small retailers

b. Large retailers/ wholesale retail stores

c. Department stores

Like Coke and Pepsi both establish almost for more than a century and consumers have emotional attachment with these two brands. MILK O SODA can be associated with milk, or nutriment.

For Coke and Pepsi have more opportunity to introduce new brands in different taste. These both brand Coke and Pepsi have very strong brand. On the same way MILK O SODA can introduce more brands to get maximum market share.

How tools and technique can be used best for……..

The MARKET ANALYSIS is done to know the needs and wants for this product by the consumers.

Customers wants to get freshness and reenergizes themselves with some natural cold Drink

Customers are wants to fulfill their thrust.

Customer want to refresh themselves after exacting by a lot of work at their jobs

Customers want to entertain their self.

Customers wants high qualitative and easy affordable product to fulfill their needs

The target market is families, students, business people, educated and non-educated individuals. People living in urban, suburban and rural areas.

The company will provide product of more quality and demanded by the customer.

Price will be raised in the second and third years if competition permits.

Raise of 15%. Will be made each year in advertising

Currently three categories are available in UNITED KINGDOM, catering to three main segments of the market,

mainly higher

medium

Low-income groups.

Target Market

Milk O Soda company target is these types of users:

Age Groups: Kids, teens, adults

Business class

Labor class

Employees

Families

Students

Quality oriented

Price and quality oriented

Price oriented

Coca-Cola commercial, basically, on the basis of the young generation, therefore the younger generation is the target market for Coca-Cola because they want to represent Coca-Cola with youth and energy, but also taking into account about older people who take time as a co-target market.

In this stage, we will introduce a new and unknown product to buyers. The promotion plan will be geared to acquainting buyers with the product.  The pricing plan will be focused on first-time buyers and enticing them to try the product.

In this stage, sales will be growing rapidly.  Buyers will have become acquainted with the product and will willing to buy it. Profit margins will be large. May be, Competitors will enter the market but little rivalry will exist because the market will be growing rapidly.  Promotion and pricing strategies will be revised to take advantage of the growth.

In this stage, our market will become saturated.  Production will have caught up with demand and demand growth slows precipitously.  There will be few first-time buyers. Although company will try to differentiate its products, the products will actually become more standardized.

In this stage, we will create innovation in our beverage product by changing the taste, colors and labeling and packaging. We will offer discounts to our customers for retaining our customers. We will focus on our advertisement that will help to attract the customers at our beverage product.

sale will drop due to the buyers intention towards other brands.  A huge competition will occur.  Low sale will cause the less profits.  In the result of the companies will quit. 

There are many factors that affect the sale of coke. We're talking about three important factors that the effects of coke.

Per capita income

Competitors

Weather

High Technological Equipment.

Skilled Labor Force.

Innovative R&D Department.

This will be extremely recognizable brand one of MILKYUM

It can maintain global MILK O SODA industry leadership.

It can maintain its major focus on world wide expansion of the Milkoyum’s image.

It can Increase market share because of its beverage product. Competitors’ have not this product.

MILK O SODA is need and want of consumers in 9 months in a year.

MILKOYUM can earn its profit by 20% consumers.

MILKOYUM will not have much need of advertisement. It can capture its customers by month advertisement by the customers.

Not Completely dairy products.

Reduced consumer purchasing power.

Less focus in the low income areas.

Less effective external communication department.

High Price.

New product will take time to take its positioning.

MILKOYUM is not famous company.

People will take time to be familiar with MILKOYUM.

New Flavors.

MILKOYUM can make Strong brand names and world wide identity as a leader in the soft drink industry.

High utilization of resources.

Sales team better functioning.

Seasoned Bracket.

Increase in availability.

Product line extension.

MILKOYUM can capture the market by monopolizing.

MILKOYUM can get positioning in the market by launching its very tasty beverage products.

Political and economical instability in the country.

Lack of diet product.

Entry of new multinational brands into local market.

Other companies like NESTLE can introduce this product and can get market share very easily.

Other companies can produce this product.

MILKOYUMs market share can reduce easily.

MILK O SODA will require more advertisement.

Demand can be increase than the supply of the product.

Keeping in mind to make Milkoyum successful that what is the current marketing strategy.

How are competitors performing?

What are the strengths and weaknesses of Milkoyum?

What can we expect from each competitor of Milkoyum in the future?

High growth low market share, 3 years would be required to turn up into the star.

Product hierarchies stretch from basic needs to particular items that satisfy these needs. We can identify seven levels of the product hierarchy. These are:

Need family

Product family

Product class

Product line

Product type

Brand

Items

MILKO O SODA will be manufacture according to the consumer needs and wants. MILK O SODA will offer variety of taste for their customer according to their taste, it will give more choices to the customer to choose according to their taste. In that respect ,MILKOYUM will be leading company in the market. Company will offer milk o soda in these brands

MILK O SODA IN MANGO FLAVOR

MILKO SDOA IN STRAWBERY FLAVOR

MILKO SODA IN APPLE FLAVOR

MILK O SODA IN ARTIFICAL FLAVORS

MILK O SODA IN NATURAL FLAVORS

MILKO SO SODA IN SOUR TASTES

It will be a beverage product, Which will be maximum quality oriented diverse product and it will have features wanted by the customers .

The features of MILKOYUM brand MILK O SODA are discussed below:

Tasty

Fresh drink

Economical pricing

This brand will be available for all those who are:

Hygiene conscious

Health conscious

Style and image conscious

Soda and milk lover

Wanting quality products at an affordable price

The MILK O SODA will be available in different size of bottles. Bottles will be of plastic and glass bottles in different shapes and sizes. MILK O SODA will be also provided in bottles of different sizes at the normal prices.

Bottle size

Half litter

1 litter

1.5littre

2.0 litter

2.25 litter

The milk o soda will also available in disposable packets having normal size.

Product will be packed in disposable bottles.

Product will have all features and benefits detail in colorful instructions for easy understanding to use it.

It also show the price of the product without sale tax and inclusive sale tax price.

Company must identify, recruit, and link various middlemen and marketing facilitators so that its products and services are efficiently supplied to target market. Marketing channels are characterized by the number of channel levels. Figure (a) given below will illustrate several consumer goods marketing channels of different length. These are

Figure (a)

MILKOYUM will establish its outlets when the business of MILK O SODAwill grows.

In the urban areas of United Kingdom, almost all types of related outlets exist. So we will offer our product to these outlets

These are few in numbers as compared to small stores.

Initially, utility stores were opened to provide goods on subsidized prices to government servants only.

Promotion stands for the various activities the company undertakes to communicate and promote its product to the target market. Thus company has to hire, train and motivate sales people.

As for as the advertising will be concern, all the advertisement of the MILKOYUM beverage product will be carry out by

Evernew concepts is one of the top ten advertising agencies of United Kingdom, established in 1987and have annual billing of 200 million.

Adcom is one of the top 30 advertising agencies of United Kingdom, established in 1965.

Fourays is also one of the top 30 advertising agencies of United Kingdom, established in 1972.

In setting the price of product, the company should follow six steps procedure as given below:

Company must establishes it objectives

(Survival, max. current profit, revenue, sale growth etc)

Company must determine the demand schedule

(Shows the probable quantity purchased per period at alternative price)

Company estimates how their costs vary at different output levels.

Company must examine the competitors price

Company selects one of the following pricing methods.

(Markup pricing, target return pricing, value pricing, going-rate pricing, sealed bid pricing)

Company selects the final price.

As for as the prices are concerned, they are on the top of the list. They will provide MILK O SODA at relatively low price. As far as their pricing method will concern, it will be easy method 100% cost and 20%projit margin will be charge on the product.

MILKJOYUM will provide MILK O SODA in disposable plastic and glass bottles. MILKOYUM will offer its drinks at normal price because they will prefer to quality and nutrients safety. They will focus on volume first they will check cost of their product and after it, they will research in market for knowing the consumers affordability price and then account department will set the price. They will do this research monthly. There will be maximum profit in bottles because the cost will be cover by the 2/3 turn over of a plastic bottle but the profit in the selling of glass bottles will be lesser because of the usage of good raw material.

Milkoyum has to face difficulty in creating the positioning in the market because these competitors can launch this type of product in the market and can get market share very easily because of having positioning in the market and good name in the market. Consumers already know these existing companies so there is no difficulty to getting attraction of the consumers at their product.weareas, our company is new and it will take time to get its positioning in the market.

MILKOYUM Company is going to introduce a new beverage product MILK O SODA after conducting surveys. Milk o soda is the need and want of public and 20%-30% public was ready to buy our product because 95% public of England drinks it. Chances are very bright that our business will be successful but there will be a fear of competitors like Benz, Shezan, Nestle will introduce such type of brand in the market and they are competitive companies so we have to get market positioning. Brand image is very necessary to get success in the market among expected competitors. Milkoyum will introduce this brand in different flavors in plastic and glass bottles in different sizes at economical prices. Milkoyum company will change the labeling and ads within the time, when there will be innovations will be required to capture the market when the completion level will be rise. Milkoyum company will offer discount rates in different occasions like EID, INDEPENDENCE DAY, CHRISTMAS DAY and specially in the month of RAMDAN . Milkoyum will spread its business in other cities of Punjab after getting the success in England.

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