Marketing Plan of Delamere Dairy's Range of Goats' - Assignment Example

Running head: Marketing Plan of Delamere Dairy's range of goats' Your name Course name Professors’ name Date Executive Summary The name of the new business is YOYO goat’s Yoghurt Shop selling exclusively delamere goat’s yoghurt and flavours that will be served in cups varying from 360g, 360g, 450g, and 125g. The yoghurt will be sold in two places namely: Dubai Mall and Dubai Festival city. These two places were identified simply because a person can enjoy his or her yoghurt while carrying out shopping in the modernised excellent Dubai Mall. The chosen places are also at the centre of the Arabic nation where there are freeways, access roads and an individual can access the product from any part of the country. Most of the customers will be drawn from the Mall area, which contains an average population of about 800,000 people per week. Target customers visiting the mall as part of their recreation in the UAE will definitely purchase without prior planning goat’s yoghurt product from YOYO Goat’s Yoghurt shop. This is bound to happen when a shopper completes a meal at the food court in a mall. Although there are several ice cream outlets in Dubai Malls, research does not indicate existence of any one of them selling Delamere Dairy's range of goats' yogurt. Introduction of this product in the UAE is therefore the first of its kind. Revenue obtained from the shop will be from sale of Delamere Dairy's range of goats' yogurt. There is need to enter into partnership with a local partner who has an extensive knowledge of the UAE market. The partner will share an agreed upon percentage of the profits realised from the sale. Most of the sale promotion will be done via print and non-print media including road shows where target groups are given samples Delamere Dairy's range of goats' yogurt. A marketing team will also be located in supermarket to try to persuade customers to buy the new innovative product. Overview of goat’s yoghurt business The goat yoghurt business is relatively new in the UAE and is classified along with other ice cream products. The ice cream businesses are often found in the snack and non-alcoholic beverage bars. It is apparent that ice cream has infiltrated the world market and is often a topic of discussion among young children and lovers. 360g, 360g, 450g, and 125g Delamere Dairy's range of goats' yogurt are more often than not bought by middle and upper class in Kenya. This statistic therefore indicates that the product will be bought in the UAE by a big proportion of average and high-income group. Living standards in the UAE is high due to oil wealth and that is why the population is made up of upper and middle class income group. Regularly, customers do not need to carry out a research on a yoghurt or ice cream product but practically try different varieties including Delamere Dairy's range of goats' yogurt. Goat’s Yoghurt customers will also be purchasing the product on impulse basis. This makes the location of yoghurt outlet very critical to the success of goat’s yoghurt sale. There is need to note that seasonality play a critical role in influencing decisions made by the consumer with respect to ice-cream and other food stuffs. Target Market Presently, yoghurt and ice cream market is growing tremendously. Coupled with current emphasis on healthy product, the sale of this new product in UAE is very promising. People are now focusing on consuming low fat yoghurt that will be served with natural toppings. This criterion allows customers to meet their individual demands while not compromising on their own health conditions. The UAE consumption pattern is heavily influenced by the food industry in the USA. As an example, 66% of the market share in USA has take-home product, 14% is dominated by ice cream while 9% comprises of frozen yoghurt. Taking note of consumption pattern of this population and the nature of Delamere Dairy's range of goats' yogurt, there is high probability that the new product will be demanded in UAE market. More distribution and outlet channels should be created with a reason of selling more goats’ yoghurt. There is a necessity to liaise with other businesses that have unique marketing strategies. Marketing objectives In an attempt to design innovative marketing strategies, the following are distinct objectives for the new product: a. First is to bring in at least 500 people in any kind of promotion done towards selling the product. b. The second objective is to pursue 2000 people to sign up for its royalty program in the first 10 months of operation. c. The third objective is to meet sales level projections for the year. The forecast for the first year is $25000 and it acts as the basis of marketing. Sales 2011 2012 2013 Ratio % Yogurt 350g Yogurt 360g Yogurt 450g Yogurt 125g Total sales The Product Goats Yogurt is a product produced after bacterial fermentation of milk. The bacteria utilised in fermentation is often referred to as Probiotic cultures. Briefly, fermentation of lactose by Probiotic cultures produces lactic acid that acts on protein in goat’s milk consequently giving yoghurt its smooth texture. In the preparation process, goat’s milk is first heated to 176F with an intention to kill unwanted bacteria and to denature milk protein to avoid formation of curds. This process is then followed by cooling process where milk is subjected to low temperatures of 112F. Bacteria culture is then added and the low temperature is maintained for about four to seven hours to allow fermentation to take place. Yoghurt is enjoyed as a cool dish mixed with natural fruit. The product can also be frozen and taken like ice cream. Most people in the Middle East serve yoghurt along with meat, meat sauces, and vegetables. This innovative product as well is mixed with various other sauces or rather act as a spicy dollop on a meal surface. It is important for customers to be sensitive of how yogurt has been stored. Properly stored yoghurt is at four degrees Celsius for 10 days, after which cultures become weak. Goats Yoghurt will satisfy most of the nutritional needs of UAE people given that it is rich in protein, calcium, vitamin B12, vitamin B6, and riboflavin. In a research done by Kolars (2), moderately lactose-intolerant people can be advised to take goats yoghurt since much of lactose in the milk precursor is changed into lactic acid by the bacterial culture. Since yoghurt contains live cultures, it can be used to prevent antibiotic related diarrhoea. Moreover, calcium in goat’s yoghurt can play a critical role in weight loss. This is possible especially with the low-fat yoghurt. The product is packed as shown below and is available in 350g, 360g, 450g, and 125g. Pricing The price menu for the new Delamere Dairy's range of goats' yogurt is shown in subsequent table. These prices are subject to change depending on changes in the market. Yoghurt Vanilla Product Product design Price, £ Yogurt 350g 1.59 Yogurt 360g 2.15 Yogurt 125 g 73p Yogurt 450 g 2.29 Promotion Strategy At the onset of the business, marketing strategy to be used is a word of mouth advertising done through word of mouth (Smith, 311). The second promotion strategy is grand opening that will last for five days and will entail press releases to print and none prints media in addition to give-aways on different radio programs. During the grand opening day, every 100th customer will win a T-shirt labelled Delamere Dairy's range of goats' yogurt. YOYO Goat’s Yoghurt Shop will as well liaise with pen and pencil manufactures to superimpose label of goat’s yoghurt brand on their products. Customer loyalty program that takes the form of loyalty cards will be launched (Waller, 151). On every visit, the loyalty card will be stamped and the customer will receive the small size 125g goat’s yogurt on every sixth visit. This is an accurate means of capturing regular customers given that more customers are motivated to buy a product when they know that they will gain something after a repeat purchase. The other approach to promoting the business is requesting the customers to provide information on their birthday. This information will be used when providing customers with discounts during such special days of their lives. Moreover, mails and text messages will be sent to customers giving them discounts on special days. As an additional incentive, partnership with radio stations will be formed to offer giveaways on some few selected programs. This falls under public relations. Budget items for the promotional strategy are laid as follows: Promotion Budget Newspaper Advertisement Grand opening Public Relations Store signage Loyalty program Distribution Strategy Distribution will be done from central location in Dubai Mall. This location is appropriate since it is at a point where it can link several other target markets. Dubai Mall is next to major highways and is near to recreation facilities where tourists derive their pleasure. This central location has 1,200 stores and a host of excellent attraction. According to Bianchi (Np), 37 million visitors were hosted in Dubai Mall in 2009. The Mall attracts about 800,000 visitors on a weekly basis, a figure which is seen to increase daily, more so, with modernization of facilities at the emirates. Competitor analysis In 2009, National Food Industries Co limited was leading in yoghurt manufacturing in the UAE. The strength of this company lies in consumer awareness of Milco brand. Availability of wide product portfolio stretching from spoonable yoghurt, flavoured spoonable product, and sour milk drinks to regular drinking yoghurt is also a source of power. Its wide distribution and intense advertisement network further accords it a strength. The weakness of this company is that it does not supply Delamere Dairy's range of goats' yogurt, which now acts as an opportunity to YOYO Goat’s Yoghurt Shop. SWOT analysis of YOYO Goat’s Yoghurt Shop Swot analysis is indispensible for a company wishing to position itself in a competitive market where opportunities are numerous. The analysis is also vital to minimise environmental threats. YOYO Goat’s Yoghurt Shop will conduct swot analysis with a goal of emphasizing its strengths and try to reduce weakness. SWOT analysis will uncover underutilised strengths and deduce weaknesses that need correction. Comparing information about the environment and organizational capabilities helps management to form realistic strategies to reach its goals (Hill, 50). SWOT analysis for YOYO Goat’s Yoghurt Shop is as follows: Internal Analysis: Strengths YOYO Goat’s Yoghurt shop is a socially responsible outlet. It values interests of its customers and will introduce into the market Delamere Dairy's range of goats' yogurt product while taking note of needs in the market. The intent of the shop is to meet differentiated needs of customers. YOYO Goat’s Yoghurt Shop plans to sell Delamere Dairy's range of goats' yogurt with a strong brand image and experiencing vast market pull. There is no doubt that the chosen product line is innovative and is constantly growing. The sales force of the shop will provide necessary strength in relation to physical resource. Delamere Dairy's range of goats' yogurt must be physically demonstrated to customers by the sales force located at various locations within the UAE. Marketing strategy formulated by the company meets innovative criteria and will ultimately lure customers into purchasing Delamere Dairy's range of goats' yogurt (Armstrong, 116). Approaches utilised in finance, marketing, and sales are designed after taking precaution of customer demands. YOYO Goat’s Yoghurt shop will be conducting frequent research of market trends such that changing market situation is understood. Financial base of the new shop is strong and may as well acquire other small and weaker shops selling product like Yoghurt. If this is done, competitors in the market will be reduced. Establishment of efficient distribution network throughout UAE will play the role of capturing larger market niche. Delamere Dairy's range of goats' yogurt is not only environmental friendly but also readily consumable in any situation by all sexes Weaknesses As a relatively new shop in the UAE, it will face competition from providers of soft drink and ice cream shops. The shop will not sell the product on credit consequently minimising daily sales levels. At the initial launch of Delamere Dairy's range of goats' yogurt, large expense will be incurred. This is explained by minimal market awareness among the target group. The target niche of goat’s yoghurt is middle class and high class who frequent social places like beaches and sporting arenas. Even though those who live below a dollar per day are few in the UAE, this proportion reduces the market for goat’s Yoghurt. External Analysis: Opportunities UAE is one of the fastest developing Arab nations with a stable political and economic environment. Each of the seven Emirates has autonomy and faces minimum government interference. Introduction of Delamere Dairy's range of goats' yogurt will face minimum interference since foreign investors are protected by law. Coupled with government support for business, YOYO Goat’s Yoghurt shop will exploit growth opportunities especial at the numerous recreation locations in UAE. People across the globe regularly hold business meetings or go for holidays at the UAE thus expanding the target market for Delamere Dairy's range of goats' yogurt. Existence of unexploited market offers opportunity for shops wishing to sell goat’s yoghurts of different varieties. The shop can also reconsider adopting a credit facility where the product is sold to dependable customers on credit basis. Threats Notwithstanding the aforementioned strength of YOYO Goat’s Yoghurt shop, there are a number of threats facing this particular product. Economic condition, especial the recent global financial crisis and the rapidly fluctuating price of oil affects how business is carried out in UAE. Economic slump has the capacity to reduce demand thus slashing overall sales level of Vanilla yoghurt (Joshi, 2005). Forward Strategy Delamere Dairy's range of goats' yogurt will be distributed to various other locations within the UAE to assist in market penetration. Price of this product will be slightly below other competing products in the market (Porter, 46). Profits made from sale of goat’s yoghurt will be ploughed back to improve outlook of YOYO Goat’s Yoghurt shop. After 10 months of operation, targets are checked if they have been met. If the laid down targets are met, another goat’s yoghurt outlet will be established in a different location. The rising population, both locally and regionally, will expand the market for Delamere Dairy's range of goats' yogurt. Conclusion This marketing plan covered introduction of Delamere Dairy's range of goats' yogurt in the UAE. This product is available in 350g, 360g, 450g, and 125g and in variety of natural fruit flavours. YOYO Goat’s Yoghurt Shop will be established in Dubai Mall to distribute Delamere Dairy's range of goats' yogurt. The marketing plan is very comprehensive with 4ps marketing strategy in addition to SWOT analysis. To penetrate the new market, prices of Delamere Dairy's range of goats' will be slightly below other related products. Works Cited Armstrong. Michael. A handbook of Human Resource Management Practice. 10th edition. London: Kogan Page, 2006. Bianchi, Stefania. 2010. "Leak at Dubai Mall Aquarium Forces Evacuation". The Wall Street Journal. Retrieved from: http://online.wsj.com/article/SB1000142405274870447940457508712244751 1764.html?mod=WSJ_World_LEFTSecondNews. Retrieved on October 16, 2011. Hill, Terry., and Westbrook, Roy. "SWOT Analysis: It’s Time for a Product Recall". Long Range Planning 30 (1), 1997: 46–52. Joshi, Rakesh Mohan. International Marketing. New York: Oxford University Press, 2005. Kolars, Joseph, et al., 1984. Yogurt--an autodigesting source of lactose. New England Journal of Medicine, 310 (1): 1-3. Porter, Michael. "From Competitive Advantage to Corporate Strategy". Harvard Business Review May-June (3) 1987: 43–59. Smith, Paul., and Taylor, Jonathan. Marketing Communications: An Integrated Approach, 4th edition. London: Kogan Page, 2004. Waller, David. How to prepare a promotional plan. Sydney: McGraw-Hill, 1998. Read More