1. 1
“MARKETING REPORT”
GROUP MEMBER NAMES:
1. Haseeb ur rehman
2. Ayesha urooj
3. Fariya zainab
SUBMITTED TO:Ma’am Hina mohsin
DATE:
SUBJECT:Principles of Marketing
PRODUCT: GoodMilk by Shakarganj Food Products
TABLE OF CONTENTS
1) Executive summary………………………………………………………………….3
2) Mission, Vision, Goals and Competitive advantage…………………………………4-5
3) Rationale behind this Idea……………………………………………………………5
4) Situation Analysis (SWOT) ( Industry Analysis)…………………………………….6-8
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5) Market needs and trends……………………………………………………………...8-9
6) Competitive Analysis…………………………………………………………………9-14
7) Product Offering……………………………………………………………………..14-19
8) Critical Issues…………………………………………………………………………20
9) Marketing Objectives…………………………………………………………………20-21
10) Financial Objectives…………………………………………………………………..21
11) Target Market…………………………………………………………………………21-22
12) Positioning……………………………………………………………………………22
13) Marketing Mix Strategies, Objectives and goals……………………………………..22-23
ACKNOWLEDGEMENT
We want to express our appreciation to our instructor Ms. Hina Mohsin for her time and
dedication to direct us. We wish to thank her for the motivation she gave us to thrive and excel.
Also this is to acknowledge that we worked as a group and explicated a lot of concepts of
marketing management through our education under our teacher Ms. Syeda Quratulain Kazmi.
This reports idea was to widen our imagination about how the real businesses go about creating
value for their company and customers. With assist from our teacher we were able to
comprehend the marketing strategies that companies employ in order to stay in the marketplace.
Working on this report has provided us with fluency and experience that will help us in future.
We are indebted to our teacher for her paramount support throughout the report and principles of
marketing course. This report was truly an unforgettable episode of experiential and precise
learning for us.
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GOOD MILK FOODS LIMITED
About Shakarganj:
Shakarganj Limitedisa Pakistani industrial companyinthe sugar,foods,andtextilesindustries.Located
inJhang,it was establishedin1967. Shakarganj LimitedGetting"BestExportPerformance
Award"(Ethanol) every yearsince 2002.
SUMMARY OVERVIEW
Shakarganj Food Products has developed an elaborate system of collecting milk directly from the
farmers on a daily basis, ensuring freshness of the product. The fresh milk thus collected is
processed using state of the art UHT (Ultra High temperature) technology and aseptically packed
in Tetra Pak filling machines. This process ensures zero microbial activation, while preserving
maximum flavor, taste, and nutritional value without the use of any preservatives. The product,
"Good Milk" is standardized at 3.5 fat and 8.9% SNF, and has a shelf life of 90 days without
refrigeration. It comes in convenient 1,000ml, 500ml and 250ml Tetra Brik packing.
MISSION:
1. Build branded food business to improve quality of life by offering tasty, hygienically
processed, and affordable, highly nutritional food products through environment friendly
processes to our customers while maximizing stake holders ‘value.
2. Meet the requirement of all relevant legislation and regulation related to consumer satisfaction
& safety, environment and other applicable laws etc.
3. To prevent pollution through controlling levels of harmful emission, effluents and other
wastes.
4. Contribute to safe and healthy environment for our country.
5. Promote mutual trust with customers, suppliers, employees, shareholders and community.
VISION:
Excellence in dairy products
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GOALS
1. Capturing the Market.
2. Providing Quality & Hygienic Products.
3. Increasing Pakistan’s Share in Dairy Products.
4. Maintaining a Profitable business
VALUES OF THE COMPANY
•Enterprise
•Empowerment
•Accountability
•Trust
•Teamwork
COMPETITIVE ADVANTAGE
• Good milk claims to be the best milk for making tea because of its richness in cream.
• Good milk has its own plants and dairy farms so it is incurring low cost.
• Good milk has a strict and rigorous quality policy regarding intake of raw material.
GOOD MILK
In the world’s fourth largest milk producing country, Good Milk has been one of the leading
brands in the category of packaged milk for well over two decades. Good Milk is pure
homogenized and standardized UHT milk, comprising 4.5 % fats and 9.0% solid non-fats. It is
packed in 6 layered tetra packaging, with a shelf life that lasts for 3 months under an ambient
temperature.
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This brand is known for carrying 100% natural goodness, bringing you the best of all nutrients
you need in a day. It is all-purpose milk that stands out as the healthiest choice for the entire
family. Be it making a refreshing cup of tea, mouth-watering desserts or simply drinking on its
own; Good Milk has always been the first choice of consumers with in the UHT category.
With tremendous improvement in the quality of milk that the company now collects through a
ban on contractor milk and certain other quality driven initiatives, “New Good Milk” is a vastly
improved product in terms of quality, taste and packaging. With the new attractive pricing of this
brand, we can safely claim that it delivers a great combination of quality and price to the
consumer.
Good milk is altogether a tasteful experience satisfying all your needs of highly nutritious
wholesome milk. It is available in 250ml, 500ml and 1000ml SKU’s.
RATIONALEBEHIND THIS IDEA:
Good milk has traditionally been the huge share holder in milk market in Pakistan. However,
during the few years this position has slipped. Good Milk’s problem is that it had gradually lost
its value in the eyes of consumers. When this happens it affects the position of a product in the
market place. This was as a result partly of strenuous competitive activity, partly because of a
lack of innovation in the Good Milk brand itself and partly because advertising had not bound
people sufficiently to the brand.
SITUATION ANALYSIS (SWOT)
The situation of the market in terms of Good Milk is this that there are some opportunities in the
market for the product as well as some threats is also there. There are strengths and weaknesses
of the companies.
STRENGTHS:
High brand value of Good milk, which denotes quality
Taste
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Nutritious
Hygienic
Packaging
Strong product and market research
Modern plant and equipment.
Qualified and diverse work force.
Focus on research and development.
Knowledge sharing and training programs
WEAKNESSES
Focus Shifted from Main Product to other products
Dependence on 3rd party for supply of milk.
Selective investment due to uncertain economic conditions.
Inadequate marketing.
Low promotional activities.
Comparatively weak distribution system.
The common man perceives Nestlé as a premium brand and thinks it is expensive
OPPORTUNITIES:
Target market has big profit margins
Bright scope of dairy products
Introduce new variants (Colors, flavors)
The overall milk market in Pakistan is 20 billion liters, out of which processed milk
contributes only 3 million liters. Good Milk Foods along with other processed milk
business contributes only 3% to this large market.
Credit policy can be adopted to increase sales.
Good milk can export to others countries.
Increased awareness
THREATS:
Animal Diseases
Availability of Natural Milk
Competition with Nestle, Engro Foods.
Dependency on contractors for supply of milk.
Price fluctuations due to rupee devaluation as raw material are imported.
The uncertainty of economic conditions poses a great threat.
The present economic crisis in the world, led to the withdrawal of foreign management
from the company and the investment has come to a halt.
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Price sensitive people.
Market Need and Trend:
Points to ponder before selecting and targeting market
What does the market need or want?
1. Hygienic and preservative milk.
2. Tetra packaging, so that healthier bacteria and nutrients stays alive in it.
3. It should be Portable.
4. Variety in Milk flavors. Good Milk is providing 4 different flavors.
5. It should be convenient, now a day’s people prefer readymade food and drinks because
of the daily hassles and tough routine. Good Milk is a healthier dairy product to have
with variety of flavors.
Who is buying what and how much, where and why they are buying those goods
already?
Milk is a daily buying dairy product, everyone take it in either breakfast or lunch or after
dinner. In fact in desserts, tea and coffees, milk is obvious.
It’s a daily consuming product so people will buy it anyway even if a person is brand
loyal and he can’t find his brand he will go for any other alternative in this case.
Needto consider whether the product offers a new solution to an old problem or
matches an emerging trend.
We are not providing a new solution but yes, we are providing better quality with variety
as well. And yes, it’s an emerging trend because now people are moving from UHT milk
to tetra packed milk.
Look in the market share that it should be realistic for you. The more competition
you have, the lower the margins will be.
Good Milk is grabbing 17% of market share. We kept our margins compatible to our
competitors.
MARKET NEED:
8. 8
Milk is the daily consuming product that we all need on our daily basis. People are
getting awareness and giving to the packaged milk. It is the most chief dairy product with
a long existence in market because the need of milk can never end.
There is an existing market competition in dairy product especially regular tetra packed
milk but we are introducing a better quality of milk with purity and thickness. Market
needs more variety in dairy products, by innovating different flavored milk we can seek
attention of customers who needs natural energized milk with different tastes at one time.
MARKET TREND:
Milk is the largest type of drinking milk product. Milk in Pakistan is huge, and milk
production is on the rise, making Pakistan the fifth largest milk producing country on a
global level. Though milk consumption remains dominated by UHT milk which is
considered safe, unpackaged/ “loose milk” still remains the most consumed form.
However, milk companies like Engro, Nestlé and Good milk Foods have been marketing
their products as safe and pure and trying to convince milk consumers from impure
unpackaged milk to safer and more pure packaged milk. Therefore, the consumption of
packaged milk has increased over the last years.
COMPETITIVE ANALYSIS:
A competitive analysis is an important dimension to consider for your company
marketing plan. Competitive analysis is an assessment through which you can establish
the uniqueness in your product and hence what aspects you play up in order to develop
interest of your target market.
STEPS IN ANALYZING THE COMPETITORS:
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IDENTIFYING THE COMPANY’S COMPETITORS:
Nestle
Engro Foods
Pakola
Good Milk foods competitors in the dairy industry are mainly Nestle and Engro Foods.
Nestle first acquired the shares in Milk Pak. Nestle due to its product line are known as
Market Leaders grabbing 44% of market share.
Engro foods established in 2004, it has got 10% of shares and emphasizes on the core
values and the culture.
Good milk foods grabbing 17% of market shares causing Nestle Dairy product line. And
the rest shares are divided in smaller competitors like Pakola, Olpers, Nurpur etc.
ASSESSING COMPETITORS' OBJECTIVES AND
STRATEGIES:
ASSESSING COMPETITORS'OBJECTIVES:
Nestle:
1. To be the nutritious and best quality brand of Pakistan.
2. To meet the needs and dwell in the life of the customers.
3. To capture the desired market share.
Engro Foods (Olpers&Owsum):
1. To provide quality products.
2. To increase profits and hold a large market share.
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Pakola Milk:
1. Increase the product relevance to the Pakistani youth.
2. To build a strong emotional connection with the youth.
ASSESSING STRATEGIES OF COMPETITORS:
Nestle:
1. “Think globally, act locally”
2. Vary to suit cultural differences.
3. They use the same symbols worldwide.
Engro Food:
1. They used horizontal integration and increased the product.
2. They differentiated in taste, quality and availability of their products in market.
Pakola Milk:
1. They used market penetration, good marketing and sales of flavored
milk.
Selecting which competitor to Attack:
Analyzing prices of competitors dominating Brand:
Product
Name
SKU’s Price Packaging
Shakarganj
Good Milk
250ml
500ml
1L
Rs.30
Rs. 50
Rs.100
12. 12
OlpersOwsum
Milk
200ml Rs.25
GoodMilkOolala
Milk
200ml Rs.25
Product Offering:
What does product offering mean?
In order to establish and run a successful business – one that achieves your objectives and makes
financial sense – you need to properly define what it is you are offering your customers.
Product offering for Good milk Foods
Shakarganj Foods Pvt Ltd. focuses on diversification strategy so it brings two new categories
with different products in the market.
1. Regular Milk
2. Flavored Milk
1. REGULAR MILK:-
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Good Milk Regular Milk product category consists of Good Milk Thick Cream
milk. Good milk Thick Cream Milk is the thickest milk in the whole country. It is
also enriched with tasty cream which adds healthier effect to milk. The following
statistics shows the comparison of thickness between the Good Milk and its
competitors’ milk.
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The above statistics shows that Good Milk consists of lowest amount of water in it. In the
above statistics, it is stated that Nestle consists of highest amount of water in milk which
is 0.97ml per 10gm of milk, Olpers the second competitor has the 0.80ml of water in its
cream milk. While beating both top brands Good milk’s Cream milk consists of 0.8ml
water per 10gm.
2. FLAVORED MILK:-
Good Milk’s second category is flavored milk. Good Milk provides a range of tasty
and delicious flavored milk which provides the richness and healthier effect of milk
and sweet taste of fruits and chocolates. Good Milk’s flavored milk range consists of
4 delicious flavors,
a) Yummy Strawberry Milk
b) Rich Chocolate Milk
c) Banana Delight
d) Scrumptious Mango
0
0.2
0.4
0.6
0.8
1
Nestle Good
Milk
Olpers
Waterinml water per 10gm
water per 10gm
15. 15
i. YUMMY STRAWBERRYMILK:-
Good milk’s Strawberry Milk is enriched with the sweetness of Strawberry and minerals
and protein of quality Milk. It consists of less preservative and less sugar. Strawberry
Milk includes strawberry essence, food color (redish pink) and some salt to enhance taste.
ii. Rich Chocolate Milk:-
Good Milk’s Rich Chocolate Milk is chocolate milk which consists of choco beans and
choco beans essence. It has less than 25% of preservatives. It is made to attract the
children to drink milk with the richness of chocolate.
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iii. BANANA DELIGHT:-
Good Milk’s Banana Delight is Banana flavored Milk with the richness of Banana
and Milk. It provides the Carbohydrates and Anti-Oxidant of Banana and Calcium
and minerals of Milk. In its all product range of flavored milk of Good milk’s there is
no use of honey but in Banana Delight we used highly refined Bee Honey in place of
sugar which enhances the flavors as well as the healthier effect of Milk. Only 10% of
preservative has been used in Banana Delight which ensures the freshness of milk and
to be consumed within a week.
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iv. SCRUMPTIOUS MANGO:-
Good Milk’s Scrumptious Mango is the Mango flavored Milk which ensures that the
people of Pakistan will enjoy the Mango flavor whole year. It consists of Mango
essence, Mango juice, preservative up to 25%, food color (Sun set yellow).
Scrumptious mango provides the richness of milk and taste of Mango.
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CRITICAL ISSUES:-
There are major and minor issues which Shakarganj Foods is facing but some them are so critical
that a company should make an effective strategy to counter all these issues. These critical issues
are,
No Centralized Decision Making means only top management or the owner and co-owner
decides the company’s policy
No proper strategic formulation and implementation of plan
Good Milk Foods doesn’t give credit on sales which is the major problem and that is
creating vast adverse effect on the sales
Sometimes the consumers doesn’t want the thick milk instead they want the refined milk,
so company should also introduce the refined milk category
Directing focus majorly on the exports where the Pakistani market is the bigger
advantage of company
Solutions to the problems:-
To counter all these problems; company must take the appropriate steps like,
Decentralizing in decision making and the employees should also given chance to play
role in decision making
Short-Term and Long-Term analysis and effects should be taken as granted
To increase the customer loyalty and sales, company should conduct trade on credit.
Diversification strategy should be implemented
Pakistani people are the bigger consumers of milk so the company should market the
product to the local market abundantly.
MARKETING STRATEGIES:-
Business promoting is the active process of getting stuff sold. Failure to promote defeats the
purpose of being in business and is a proven route to going out of business. Despite the need to
promote or perish, many small business operators often fail to match the correct promotion with
their selling objective. Using the wrong promotion to get stuff sold usually produces unwanted
results.
Brainstorming the marketing strategies is one major key point or else it would lead to a sheer
deadlock.
Keep all of this in point the strategies we decided for our business are as follow:
1. Through Social Media
2. School campaigns
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3. Creating awareness of how important is it to have a glass of milk every day.
4. Creatively shelving the product.
5. By portraying the hygiene of products by showing it against the negative side of open and
unprocessed milk.
6. Initially install a Good milk flavored milk dispenser in the super stores to allow customers to
test a glass before purchasing.
7. Use of vehicular advertisements like painting product ad on taxis, rickshaws, buses and other
commercial vehicles.
FINANCIAL OBJECTIVE:
1st
Year:
To reach the breakeven point, assuring that there are no significant losses. Year 1, is the
introduction phase, creating awareness would play a greater part without much of profits
expected. The initial expected sales are to remain low, equaling to 200,000 units of Good milk
full cream milk and around 700,000 units of Good milk flavored milk brands.
2nd
Year:
The growth phase is to follow after the introduction phase which is going to be the year 2 of the
product. By year 2 enough of penetration in the market would have been taken place product
would be starting to generate revenue with significant growth.
The estimated sales for the year 2 is 1 million units sales volume for deluxe range and 500,000
units sales volume for Good milk Thick Cream Milk.
By the half of year 2 we will start earning profits and the cost of production would be reduced
about 10 -15% per annual.
TARGET MARKET:
Good milk offers regular Full cream Milk and a wide variety of milks having different flavors
such as chocolate, strawberry, mango and bananas
Goodmilk Full Cream Milk:
Good Milk’s target market is mothers or housewives who purchase food items for the
family in urban areas and require performance enhancer agent. They are brand conscious
& want to excel in every walk of life.
Good Milk also targets sports lovers who want instant energy after daily hectic activities.
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Goodmilk FlavoredMilk:
Good Milk flavored milk’s target market is children.
Aged from 4-12
These children dislike the taste of regular milk. So therefore Good Milk introduces
milk in various flavors such as chocolate, strawberry, banana and mango that is
delicious, nutritious and healthy for children to drink daily.
These children are school going, active playful kids that require nourishment for their
daily playful activities.
POSITIONING:
Our marketing will mainly focus on communicating about the thickness of our full cream milk
the different types of flavored milks we are introducing and also the information related to the
benefits of our milks that is healthy in case of full cream and healthy delicious milk in case of the
flavored milks will be communicated to the public through advertisement.
GoodMilk Full Cream Milk is positioned as a whole milk for the entire family who
require a daily milk product that provides the necessary nutrients. For the families who live
their lives to the fullest. Good milk is the purveyor of purity that is beneficial to health. Our
focus is to ensure excellent quality and thick creamy texture by processing the milk.
GoodMilk Flavored Milk is positioned as a delicious variety of chocolate, strawberry,
banana and mango flavored milks for children that are fussy and don’t like the taste of
regular milk. The flavored milk of Good milk provides the same nutrients that regular milk
provides but with a different delicious flavor.
Marketing Mix Strategies:
PRODUCT:Good Milk offers regular full cream milk and a wide variety of milks
having different flavors. The brand name will be displayed on the product and its
packaging.
1. Good Milk Full cream Milk available in 250ml, 500ml and 1 litre packs
2. Good Milk flavored milk available in 200ml packs
PRICE:The different milk types include different pricing strategies. Good Milk
will launch its milk products at low and affordable prices to its consumers. Following
Table shows the price ranges according to weight/quantity of the product:
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PRODUCT QUANTITY PRICE
1. GoodMilk Full
Cream milk
250ml
500ml
1 litre
Rs.30
Rs.50
Rs.100
2. GoodMilk
FlavoredMilk
200ml Rs.25
PLACE: Good Milk cartons containing full cream milk and the various kinds of flavored milk.
In the first two quarters distribution will be very selective only the major supermarkets of
Islamabad (Metro, Mart 52 and Esajees), Karachi (Hyper star, Imtiaz, Fareeds, Aghas) and
Lahore (green valley, Hyper Mart, Makro and Hyper star). After evaluating the sales response,
the distribution will be expanded to smaller retailers of these cities and then to supermarkets and
retailers in smaller cities such as Hyderabad, Faisalabad and Peshawar.
PROMOTION:Using all media forums including radio, television and internet, we will
reinforce the brand name and benefit of our product. Media consumption researches will
enlighten us with the patterns of advertising most effective to reach the appropriate target market
and researches will help the advertising agency to set the timing to reach prospects before and
during product introduction. Advertisements will appear on media impulsively to constantly
remind the audience of the brand differentiation and maintain brand awareness. To attract, retain
and motivate channel partners for a push strategy, we will use trade sales promotions. Until
Good milk is an established brand, direct market channels will be used for sales and
communication.
