OUR VISION

TO BE A COMPETITIVE, COMMITED & CUSTOMER FOCUSED ORGANIZATION WITH CONTINUING EXCELLENCE & STANDARDS IN DAIRY PRODUCTS.

MISSION

TO MAKE THE RECOGNITION OF OUR COUNTRY AND COMPANY IN THE GLOBAL MARKET THROUGH OUR INNOVATIVE AND UNIQUE PRODUCT, OFFERED BY US IN ECONOMICAL PRICE CONSIDERING THE HEALTH AND PURCHASING POWER OF THE CONSUMERS.

NAME OF OUR COMPANY

We have chosen the name of our company CLASSIC DAIRY FOOD. The reason to choose this name for our company is that, company will introduce a new dairy item in every winter and summer season.

LOGO
Its our logo which wills also giving a message for our consumers. We will use this logo style for the newly item flavored cream. Company will show its name on product in this style.

Dairy Food

OUR THEME
Healthy food makes You healthier

Executive summary
Starting a new business is always tough. We have spent hours and hours putting our Business plus marketing Plan together, generated versatile ideas on variety of products, looked towards the feasibility of our ideas, consulted with experts, considered every aspect towards finance gathering, made a plan to arrange office equipment, thought about every aspect to start a new business. Finally we decided to enter in the dairy product industry, With the every passing day, dairy products are becoming more popular in Pakistan as well as in all over the world

because it gives a balanced ,nutritious and delicious food to the human being. A rising trend in livestock industry has created a more opportunities for the dairy product manufacturers to enter in this industry and they can gain maximum profit as well as livestock industry can be promoted very well in Pakistan. So, we have an idea to enter in the dairy industry of Pakistan and we have decided to introduce whipping cream in different fruity flavors. We have planned to enter with a new company, with new brand name and with new logo in the market. All this we will do by applying marketing strategies, by checking customers demand in dairy products with market segmentation. In this course of innovative and competitive environment we have learned the marketing mix elements, target market and market segmentation. It is a demanding exercise which has acquainted us with the essential elements of setting up a new business and ensuring its growth by efficient implementation of marketing and financial strategies as well as safeguarding it from external and internal threats. This project is a door of opportunity to the realization of our dream of being entrepreneurs. A dedicated and committed effort towards this project has certainly helped us to materialize this business plan in future. By making this project, we all have learned that to build a successful marketing effort in a competitive environment is tolerance, shared goals and commitment. To create new markets and products requires a supportive environment, mind-set and investment horizon. The nature of our business is to involve in dairy products, specifically to introduce flavored cream in the market, which will be very delicious as well as will give a full nutritious and balance food to our valuable customers. To implement this project ,at a very first step we will have to collect milk from dairy forms and individual dealers, for

this we will select a location near to villages and dairy form houses where we will make a cold milk storage house, an easy way to collect milk, and to preserve it. For this we will make contract to our dealers and owners of dairy form houses.

I. CURRUNT MARKET SITUATION

Our customers want some thing different in their existing product so, we are introducing a new product and provide full information of our product to the customer. We check the feasibility of our new product through questionnaire then we prepared sample of our flavored cream and tested it to the market and found good responses.

A. CURRENT CUSTOMER MARKET:

Market segmentation is the identification of portions of the market that are different from the one another. Segmentation allows the business to better satisfy the potential customers needs. After analyzing the demand of our product we have segmented consumer markets on the basis of following consumer characteristics. o Geographic segmentation o Demographic segmentation o Need based segmentation

B. COMPETITION:
Our company has a competitive edge over the Haleeb Company and Nestle because we are the first one to produce flavored cream. Our competitors have not yet introduced flavored cream so this is the main factor that differentiates us from our competitors. We came to know from our primary research that most of the customers like flavored cream especially strawberry flavor, so we have made strawberry flavored as well as other flavors according to the needs and wants of customers. 6

C. ENVIRONMENTAL FACTORS
Environmental factors are the actors that affect the target market. Following are the environmental factors that may affect the customer acceptance and rejection of our Clint: 1. DEMOGRAPHIC ENVIRONMENT The worlds large and highly diverse population poses both opportunities and challenges. Our product is for every kind of age people but specially youngster and kids. We have observed through are primary research that most of the people like cream to have in breakfast, as a desert so we have introduced flavored cream in which we will add fruit to make it delicious. 2. SOCIAL AND CULTURAL FACTORS According to the cultural and social environment our product is acceptable. Now a day its been a specialty and almost every house to make a creamy desert. All age groups accept our product because it gives nutritions to a person who eat it. Reference groups and all other groups accept our product because all the ingredients which we use in making a product are Halal. It is a hundred percent Halal food. 3. ECONOMIC CONDITION As a marketer we have paid close attention to major trends and consumer spending patterns. Our product is priced according to the customer demand what we have come to know through the primary research. We expect that the prices what we have set will be favorably accepted by the customers and the product will be liked too. 4. STATE OF TECHNOLOGY Technology effects production, packaging and distribution of product. The technological environment makes the product more standardized and enhances its quality. This product

requires very less services of technical experts. We use technology in manufacturing the flavored cream. We have established modern cream processing and packaging facilities based on advanced technology to convert abundantly available raw milk into high value added dairy products. In addition, with improved conditions for milk pasteurization, availability of chilled distribution facilities and consumer preference for the low cost pasteurized milk, the sector provides unique opportunity for investment in establishing pasteurized milk production plants. 5. OTHER MICRO AND MACRO ENVIRONMENTAL CONSIDERATION: These are the other macro and micro environmental factors that may affect the acceptance and rejection of our Clint: NATURAL ENVIRONMENT Natural environment effects our product in manufacturing, in a way that due to unavailability of natural resources like fruits in nearby shops, we have to incurred cost in transportation to go to far off towns to purchase fresh fruits. POLITICAL ENVIRONMENT As a marketer we consider the political situation a major hurdle in the production and manufacturing of the product. Like because of hoarding and increase in prices has changed the spending pattern of the customers. And we have also incurred high cost in making the product. SUPPLIER As a marketer we have a good relationship with our suppliers of dairy farms because they are important for companys customer value delivery system. They provide raw material on time so we produce our product efficiently and deliver it to the customer. Suppliers are

seriously effect marketing, so we always make good relation with them and fulfill their needs on time.

D. SWOT ANALYSIS SUMMARY:

SWOT analysis is a tool for auditing an organization and its environment. Its the first stage of planning and helps marketers to focus on key issues like Strengths, Weaknesses, Opportunities and Threats. Strengths and weaknesses are internal issues and on the contrary Opportunities and Threats are external issues.

Strengths

Opportunities

SWOT
Analysis

Weaknesses

Threats

1. STRENGTHS:

 2. WEAKNESSES:

Brand name Capital Our people our strength Diversity of workforce Selling Strategy R & D department Market share Packaging Customer Loyalty Brand Positioning

Lack of technology Labor union Inefficient waste disposal system Not properly deliver products feature

3. OPPORTUNITIES: profit Expected to go in the global market Enhancement of technology Stability of governmental policies Covering more of the market share and thus earning more

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4. THREATS: Following are the threats: MAJOR THREATS Threats of new entrants Foreign investors Imitation Political instability Change in import policy Customer liking for the product

POTENTIAL THREAT: Not properly conveying our message through advertisement.

MINOR THREATS: Change in price of raw material Suppliers are not supportive

II. MARKETING OBJECTIVES OF OUR COMPANY

To introduce an innovative product in the market. To inform customers about the feature of product. To attract new customers. To adjust price at a level that must cover the cost of production and generate reasonable revenue. To consider the nature, demand and purchasing power of buyer. To consider the standard of living of buyer.

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To reduce the extent of seasonal decline in sales. To make it easier for sales man to serves more orders and arrange displays in retail stores.

To create demand for new product by attracting attention of people towards it.

Make good relationship with suppliers and retailers. To capture the maximum market through the want satisfying products.

Setting the price of product in relation with competitors price. Promoting products through the most effective medium To meet the needs and requirements of the customer. To make a marketing campaign in remote areas. To use the proper channel for targeted market. To reduce price and increasing sale volume. Access towards people of remote areas. To minimize the cost of production. To take the notice of competitors cost.

iii. MARKETING STRATEGY AND ACTION PROGRAMS

Our aim is to bring innovation by adopting following strategies: COMPETITIVE STRATEGY: want to adopt competitive business strategy; we will attempt a sustainable competitive strategy. Our aim is to grow and maintain the competition in the market.

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 POSITION IN THE VALUE NETWORK: our aim is to identify the competitors, complementors, and any net work effects that can be utilized to deliver more value to the customers. REVENUE GENERATION AND MARGINS: our aim is to develop the strategies for sales, for the increments of profit margins. VALUE CHAIN STRUCTURE: our aim is to develop the strategies for those activities. That will capture part of the value that it creates in the chain. MARKET SEGMENTS: our business aim is to identify the needs of different markets and make planning to segments the market according to the needs of economy. VALUE PROPOSITION: our aim is to identify and to describe the problems of customers and the searching of customers problems with customers perspective.

If the new product concept does not fit the companys overall marketing strategies, serious consideration must be given to either changing the company marketing strategy or not pushing the new product concept. 13

A. MARKET SGMENTATION AND RECOMMENDED TARGET MARKET:

We are segmented the market on different basis like demographic basis to see their income patterns and need based segment to fulfill their needs and geographical basis. 1. MARKET SEGMENTATION Market segmentation is the identification of portions of the market that are different from the one another. Segmentation allows the business to better satisfy the potential customers needs. After analyzing the demand of our product we have segmented consumer markets on the basis of following consumer characteristics. DEMOGRAPHIC SEGMENTATION (Age) On the basis of demographic segmentation we have made this product for every age of people. From children youngsters

From youngsters

old people

Every one likes to eat cream. Either she is female or he is male. INCOME: In case of income level, we will adjust our price of every cream pack that will affordable to every income group, either some one is from lower, middle upper class. GEOGRAPHIC SEGMENTATION Initially we have decided to segment the market on the basis of regions because we have analyzed the demand of our product in FJWU.

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NEED BASED SEGMENTATION: As our segment market will contain people from every class, male and female, and from young to old. Cream is liked by every person. We analyzed the demand and taste of our customers and offered them an innovative cream with different flavors. In this way we made need based segmentation. SEGMENT ATTRACTIVENESS: As we have seen in the market there are some companies like nestle introduced their favored milk and yogurt in the market but not in flavored cream so this new feature in cream will make attraction in our segment. So market growth is possible, access to the market is also possible as now people are becoming more conscious towards their health and they like dairy products for balanced diet. 2. TARGET MARKET Doing business without knowing what our target market will prevent us from reaching our objectives: increased sales, market share or brand awareness. There are five different types of marketing strategies as given below: Single segment strategy Selective segment specialization Product specialization Market specialization Full market coverage

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From the above strategies for target market, we have adopted a product specialization strategy, because we are offering our product in FJWU because we have segmented our market on the basis of geographically. Our target customers will include Individual customers and businessmen. Individual will include both Male Female

(Children, youngsters, and old people)

B. SEGMENT POSITIONING:
Our product has numerable feature. It will give not only fruity flavors but also will give our body a balance diet. It will also give nutritious and delicious effects to our body. So, all these features of our product will be very helpful to get strong position in the market. We adopted the cost effective program strategy. Our production department is efficient. It is affordable for every social class; we will present it in the market with low price.

C. MARKETING MIX
Combination of marketing elements used in the sale of a particular product. The marketing element center around four distinct functions, sometimes called the Four Ps 1) Product 2) Price 3) Place 4) Promotion

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All these functions are considered in planning a marketing strategy, and any one may be enhanced, deduced, or changed in some degree in order to create the strategy necessary to efficiently and effectively sell a product. The MARKETING MIX approach to marketing is a model of crafting and implementing marketing strategies. It stress the mixing or blending of various factors in such a way that both organizational and consumer objectives are attained. As our organization is customer based so in orders attain the customers we convert these four Ps in four Cs o Product into customer solution o Price into cost to the customer o Place into convenience o Promotion into communication 1) PRODUCT STRATEGY: As you know from the long procedure of product development we have done a huge research process to develop a product which is best fit for the public for improvement of their health. The key benefit of our product is to maintain the health of consumer and give the satisfaction, this attribute make it unique and remarkable. It is also its core benefit that is not only but also giving satisfaction because all whipping cream just improves the taste for a while but they dont give the satisfaction which is main requirement of the consumers. This benefit also makes our product unique and attractive. The actual product of classic is low calories with the specific name Classic flavored cream which is solution of diet food. In real sense it gives the solution of the customer problem.

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According to our point of view our product is favorable for our customers but if they are not satisfied with or product packaging, taste, quality etc then we will definitely look upon their suggestions and try to improve it. 2) PRICING STRATEGY: Price is the amount of money charged for a product. Price is the sum if all the values that consumer exchange for the benefits of having or using the product. Price is very important feature its not just a number or tag to an item. Its only the source of revenue from the marketing mix all others (product, place, promotion) are cost. We use penetration pricing strategy because of product is new in the market and usually this is the most appropriate approach according to the market experts. As we have lot of multinational competitors that is why it is very good strategy to capture the market and to become market leader. Our company set the price as low as possible. The objective which keeps in mind before selecting the price is to capture the maximum market share and to become the market leader. The price we have selected is reasonable and affordable but still if the consumer is not satisfied with it then we will change it. And the retail price is Rs.30 for 8oml cup and Rs.35 for 100ml cup. But if the customer will not be satisfied then will decrease the prices. Pricing will be done according to the cost i-e cost will be on cost-plus basis. After considering the cost we will add an appropriate profit. Pricing will be done keeping in view the prices of the competition, as we have no competitors so being a new product we have to catch our customers with higher prices for better quality. So we will cut down costs if necessary in order to meet competition prices.

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Our main pricing objective will be sales oriented i-e main pricing goals would be to: Increase sales volume: As we plan to grow fast we have to adopt the strategy of increasing sales volume. We have to discourage competitors so we first have to concentrate on getting customers and setting up a market share and all this could be done when we campaign effectively for incrementing sales. Maintain or increase market share: As a new comer in the market we have to concentrate on developing a healthy market share and maintaining it. Many companies go in loss within their 2nd year of opening because they are unable to maintain their market share. We will avoid this by innovation and schemes. The SKIMMING pricing strategy is implemented because the product is new in the market and usually this is the most appropriate approach according to the market experts. Also our pricing strategy selected upon some reasons: Our product has distinct features which are strongly demanded by customers. Our product has inelastic demand, so we can set the price of our product at highest possible level. While using the SKIMMING technique our companys average profit is quite justified regarding the huge investment involved.

10% which is

PRICE ADJUSTMENT OF (100ml cream pack for all flavors) Cost of the product (MATERIAL + LABOUR + FOH) + Marketing & Administration expenses Cost price of product produces + 10% profit + Profit of retailer +sales tax @ 15% 18 7 25 2.5 27.5 3 30.5 4.5

Detail Rs. Rs.

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PRICE ADJUSTMENT OF (80ml cream pack for all flavors)

Detail Rs. Rs.

Cost of the product (MATERIAL + LABOUR + FOH) + Marketing & Administration expenses Cost price of product produces + 10% profit + Profit of retailer +sales tax @ 15% 3) PLACE STRATEGY: Another element of Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. 15 5 20 2.0 22 4 26 3.9

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Distribution channel: We are using the three level channel distribution involving Whole seller Distributor retailer

Intensive distribution: We are following the intensive distribution approach in our delivery of products to the consumers because this is the most suitable method in case of consumer goods. Potential customers: We are adopting intensive distribution due to a fact that we have a huge number of potential customers. Specific channel members: We have selected the channel members very carefully because the whole success is lying in a proper implementation of the strategies and not only the formation of these strategies. Role of channel members: A sound communication system is adopted to effectively communicate all the channel members. It prevents any miss communication between the channel members and results in the maximum out put. Coverage: We have covered the whole university which is very suitable for our product and it is a plus point for us. Our future plans about the coverage of our product are the Pakistan. Actually the target of our product is the whole country. As cleared by our vision statement. Assortments:

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We have divided our country into major regions which are our university. We focus on this region with different strategies. Which attract them? Actually we want to facilitate all the citizens of our country. Inventory: We have a raw material of two months in advance to avoid any kind of conflict or difficulty which may come for the time being. We have two months production in advance to meet the requirements of urgent need. We follow economic order quantity technique. Transportation: We have own transportation service to cover all the segments because the success of our company also depends upon easy access and cover all the segments. Quick service is the key point and in this regard we have enough transportation. We will use one level marketing channel.

PRODUCER

RETAILER

END CONSUMER

4) PROMOTION STRATEGY:

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It is very important P.It plays very vital role for changing the shape and location of demand. The main purposes of promotion are to inform, persuade and remind the costumer. Advertising plays a very important role in the pricing and selling of a company. We have to make the consumer sure that the price they are paying for our fruity cream is the right one so; we have to rely heavily on our promotional scheme for bringing out the variety of flavors in our desert and to make sales. If promotion of our product is not good and the customer is not even aware of the salient features and uniqueness, then we definitely have to cut down on our prices in order to rule the market on the basis of price rather than price and quality together. Main objectives of advertisement of product: 1) Information: The primary function of advertising is to inform the existence of the product 2) Image: In our advertising image is the most powerful component. The most effective is word of mouth. Its what that converts reaction into action, the action of buying. We all want to have the image of recognition of the company. 3) Motivate the consumer to visit our sales room. 4) Maturity: advertising will put our cream price ahead of competition. 5) Its not just selling. Our objective is not simply to sale 6) Informing people how to use it 7) Present our new brand of whipping cream in front of the people.

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APPENDIX
QUESTIONNAIRE & RESULTS
Do you like to eat cream?

Yes No

64% 36%

Do you eat cream?

Daily Once time in week More than one in week Once in month More than one in month

18% 37% 26% 12% 7%

Why do you eat cream?

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 Due to taste Due to fashion For satisfaction

60% 26% 14%

Would you like to eat cream in different flavors?

Yes No I dont know

59% 28% 13%

In which flavor would you like to eat (you can choose more than one) mango vanilla strawberry pineapple chocolate banana 76% 34% 92% 29% 74% 54%

Do you want any other flavor?

Yes No

26% 74%

Which flavors do you want to add?

Blue berry . .

How you rate our product idea?

Excellent

54%

25

Good Fair Poor

32% 12% 2%

What price range would you prefer?

Rs. 25-30/100ml Rs. 30-35/100ml

11% 74%

Rs. 35-40/100ml 15%

What price range would you prefer?

Rs. 20-25/80ml Rs. 25-30/80ml Rs. 30-35/80ml

20% 52% 28%

From where you get cream for your use

Household makes cream 26% from milk & cream shop 52% packed cream from stores 22%

What do you think packed cream should be available in?

80ml 100ml 150ml More

29% 61% 8% 2%

What do you think cream should be available at?

Bakery Milk shops

20% 37%

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Utility stores 22% Everywhere 22%

CONCEPT TESTING:
We have tested the concept about this product by asking (100) prospective customers to check and test what they think about the idea. The results of our questionnaire are represented as graphically below. Most of the people like cream especially in breakfast and households make different product with this food item. When we told them about our idea of cream in different flavors, in this regard we have also got a very good response from the people.

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DO YOU LIKE TO EAT CREAM

YES NO

LIKING OF PEOPLE FOR FLAVOURED CREAM

YES NO IDONT KNOW

60

prefrence regarding flavors 60 26 14 20 0 40

due to taste due to fasion for satisfaction

do you eat cream?

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LIKING OF PEOPLE FOR FLAVOURED CREAM

liking disliking

prefrence regarding flavors 37 26 18 12 7 40 30 20 10 0

daily once time in week more than one in week once in month more than one in month

do you eat cream? flavors

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RATING OF FALVORS

54 74 29 92 34 76 FLAVORS LIKING FLAVORS

100% 50% 0%

banana choclate pinapple strawberry vanilla mango

RATE OUR PRODUCT IDEA

60 50 40 30 20 10 0 EXCELLENT 54 32 12 2 FAIR

RATE OUR PRODUCT IDEA

product available in pack of

70 60 50 40 30 20 10 0 PACKED PRODUCT SHOULD BE AVAILABLE IN 29 8 250g 500g 1 kg 2 more 61

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After this, we have also made cream and tested that from those people who have filled the questionnaire, people have really enjoyed this dairy food product that was really delicious and nutritious as well. Then we again analyzed the customers response to our Product, represented as:

LIKING OF PEOPLE FOR CREAM IN FLAVOURS

liking disliking

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