Frezi Dairy has decided to establish its ain milk-based wellness drink, Le Shock, which would come in assorted spirits, such as, strawberry, banana and cocoa. The merchandise is aimed into bettering the wellness and day-to-day consumption of childs and adolescents between the ages of 5 to 15 old ages.
Traveling on, the major rivals for Le Shock would be Calci-Yum, Primo and Wave. Some of the macro-environmental factors impacting the production and distribution of Le Shock are clime, economic conditions, civilization, society, technological forces, political and legal forces. Frezi Dairy has segmented Le Shock harmonizing to Geographic, Demographic and Psychographic bases. The merchandise has been targeted to kids and adolescents between the ages of 5 to 15 old ages old in the Auckland country.
Furthermore, there would be 3 different sizes of packaging ; 250ml for kids under the age of 9, 500ml for childs between the ages of 9 and 12 and 750ml drinks for consumers above the age of 12. Le Shock would be distributed by and branded under Frezi Dairy and aims to pull as much clients as possible, hence monetary values would be low.
Therefore, it could be concluded that Le Shock would be a milk based drink, enriched with proteins and Ca particularly for childs and adolescents between from 5 to 15 old ages old.
After the awash of contention over steroids and addendums during 2004 Summer Olympics, a sports writer seemed to detect that American gold medalist swimmer, Michael Phelps, was playing it safe. As stated in the CBS intelligence “ he preferred to imbibe Carnation Instant Breakfast between races. ” ( Sine, 2006 )
Similarily, this twelvemonth, Frezi Dairy has decided to establish its ain milk-based wellness drink, Le Shock. Frezi Dairy, a company established in 1992 as a distributer for natural milk, has grown into a Auckland-wide manufacturer for all sorts of dairy merchandises, from bungalow cheese to yogurt, powdered milk and now presenting, a milk-based wellness drink for childs and adolescents, Le Shock.
Futhermore, Le Shock would be a milk based drink that would come in assorted spirits, such as, strawberry, banana and cocoa. It would be rich in Ca and minerals and would be aimed into bettering the wellness and day-to-day consumption of childs and adolescents. It had been noticed that consumers are progressively going wellness witting, therefore, wellness drinks like Le daze would be a nice option to sugary drinks. Ultimately, Frezi Dairy aims to accomplish a gross revenues volume of $ 500 000 by the terminal of first twelvemonth of debut of Le Shock.
2.0 Situation Analysis
The European colonists were the first to import Dairy cowss to New Zealand, to bring forth milk, butter and cheese for local supply. The dairy market in New Zealand today consists of more than 8 co-operatives, out of which 3 are involved in the production flavoured milk drinks.
The major rivals for Frezi ‘s Le Shock would be Fonterra ‘s Calci-Yum, Primo and Fruco ‘s Wave. Frezi Dairy aims to accomplish 5 % of the milk drink market portion during the first hebdomad of distribution, nevertheless, by the terminal of the first twelvemonth of production, the company aims to derive at least 20 % market portion.
Presently, the milk drink market is dominated by merely Claci-Yum, Primo and Wave. Le Shock would confront great competition from these well-established rivals.
2.1 Macro-environmental factors
Climate- the conditions has a major consequence on the production of dairy merchandises, for illustration, utmost conditions conditions could impact the wellness of the cowss and this could cut down the supply of natural milk, hence, impacting production of Le Shock.
Economic conditions, this affects the demand for a merchandise, for illustration, a recession would do consumers to purchase lone necessities, go forthing out merchandises such as Le Shock.
Culture and society, the gustatory sensation and life style of people, for illustration, people going more wellness witting would take to an addition in demand for Le Shock.
Technological forces, promotion in engineering would increase productiveness, addition quality and hence, increase the demand for a merchandise.
Political and legal forces, these are the ordinances and legal demands for the companies to follow to be able to go on with the production, for illustration, revenue enhancement, employment, inducements and investing ordinance.
2.2 SWOT Analysis
An established company
New Zealand owned and operated
Own dairy farm
Handiness of capital
Producing a milk-based energy drink
Producing Instant Breakfast
Family size packaging
New into the milk drink industry
Pricing might be high
Hesitant and unsure clients
Ignorant and unskilled staff
3.0 Target Market Analysis
Market cleavage is fundamentally spliting a individual market into smaller sectors. The basic ground for this is spliting the market into smaller sections is to do it simple to turn to the demands smaller groups of consumers and seek to fabricate merchandises in agreement to their gustatory sensation and manner. Market cleavage involves placing groups of similar demands, placing features of clients with similar wants, choosing mark markets, developing effectual placement schemes for each targeted section and developing selling mixes for each targeted section. Market cleavage enables sellers to place and fulfill specific benefits sought by groups, dividing selling plans by spliting market into sections, choosing a mark market and implement the market cleavage program.
3.1 Cleavage Variables
Frezi Dairy has segmented their merchandises harmonizing to Geographic, Demographic and Psychographic bases. The merchandise has been targeted to kids and adolescents between the ages of 5 to 15 old ages old in the Auckland country.
Geographic Segmentation is done harmonizing to the metropolis size, population and clime. This enables sellers to understand the merchandises that are in demand within that part. It would be easy for Frezi Dairy to aim clients within the Auckland part since there are a widespread of retail mercantile establishments and dairy stores throughout the Auckland part. Frezi dairy would aim retail stores located near schools and in shopping promenades, as these countries would aim kids and adolescents who go out to promenades or shopping with friends during weekends and after school.
Demographical Segmentation is done harmonizing to the distribution of a population ‘s age, gender, income or cultural background. This cleavage technique plays a critical function in make up one’s minding whether the merchandise should be mass marketed of produced for a specific group of people. Frezi Dairy would aim kids and adolescents between the ages of 5 to 15 old ages old, since the childs within this age group are the 1s who consume milk based beverages the most. Frezi Dairy would besides hold different packaging for kids and adolescents, for illustration, 330ml packages with straw for kids since they have a smaller appetency and above 500ml bottled drinks for adolescents since they consume more.
Psychographic Segmentation is distribution harmonizing to the personalities, life styles, activities, involvements and sentiments that would do them more attracted to the merchandise than others. Frezi Dairy is aiming adolescents who are wellness witting and kids involved in featuring activities. Le Shock has been designed, produced and flavoured to be consumed by kids and adolescents to assist them maintain tantrum and give them high protein with their ingestion.
3.2 Segmentation Strategy
Cleavage scheme is fundamentally marketing scheme used by sellers to set up a strong individuality in a market. Frezi Dairy would utilize geographic and demographic cleavage to aim adolescents and kids between the ages of 10 to 15 throughout the Auckland part.
4.0 Targeting Scheme
Selling has a cardinal function to play in make up one’s minding on the group of consumers to fulfill or bring forth the goods for. An effectual targeting scheme has a great influence on purchaser behavior Buyer behavior is fundamentally a client ‘s purpose towards purchasing a merchandise. It refers to the choice, purchase and ingestion of goods and services for the satisfaction of the clients wants. It begins with the apprehension of what motivates the client to purchase a peculiar good.
4.1 Factors impacting purchaser behavior:
Fiscal factors: Frezi Dairy has to take in consideration the budget of the people. Most people might non include Le Shock in their budget, hence, Frezi Dairy would maintain the monetary value of Le Shock depression.
Emotional Decision: this includes the demands and wants of the client, therefore, Frezi Dairy would hold to advance their merchandise good plenty to be able to act upon the determinations of consumers.
Life manner: this depends on the sort of life consumers live and their penchants, for illustration most Vegetarian people are more likely to travel for fat free merchandises, therefore taking this into consideration, Frezi Dairy has created Le Shock fat free.
Peer force per unit area: Most childs would desire to imbibe Le Shock merely because most of their age group does.
Demography: Le Shock would aim childs and parents between the age groups of 5 to 15 old ages. There is about an equal ratio of males and females between the ages of 5 to 15 old ages.
5.0 Positioning Scheme
High Monetary value
Le Shock would be a high quality milk based flavoured drink enriched with proteins and foods, advancing a healthy life style, at a sensible monetary value. The merchandise line would dwell of 3 different spirits of drinks ; cocoa, banana and strawberry. The merchandise mix has been created after taking into consideration the ingestion degrees of childs and adolescents between the several age groups.
Packaging: There would be 3 different sizes of packaging ; 250ml for kids under the age of 9, 500ml for childs between the ages of 9 and 12 and 750ml drinks for consumers above the age of 12. The drink would be magnificently packaged into plastic bottles which can be re-sealed for later usage. However, the 250ml bundles would be paper boxes, have re-sealable tops and contain straws.
Stigmatization: Le Shock would be distributed by and branded under Frezi Dairy because of the good repute that the company has earned throughout its production life. The milk based drink has been named Le Shock so that it ‘s easy to retrieve and the name would oblige teens and kids to seek it out as it would give them a feeling that the drink would revitalize their energy with a daze.
Le Shock Ingredients:
Serving size: 1 bottle ( 250ml )
Frezi Dairy aims to pull as much clients as possible ; hence, the monetary value of Le Shock would hold to be low plenty to suit into their disbursals.
6.1 Retail monetary values of Le Shock:
Le Shock 250ml ( Chocolate, Strawberry, Banana ) : $ 1.20
Le Shock 500ml ( Chocolate, Strawberry, Banana ) : $ 2.50
Le Shock 750ml ( Chocolate, Strawberry, Banana ) : $ 3.50
The monetary values were determined after taking into consideration rival ‘s monetary values, entire costs of production, distribution and operating expenses.
Entire cost of production included labour costs, selling and distribution costs, entire costs of natural stuff, mill costs, entire operating expenses and administrative costs. Frezi Dairy plans to get down with a net income border of 10 % and programs to cut down the costs to increase this border to 20 % once the merchandise is successfully introduced, promoted and distributed.
Aims: Frezi Dairy aims to carry every bit much as clients as possible. The chief mark group consists of kids and adolescents between the ages of 5 and 15 old ages. The 2nd mark market of Le Shock consists of parents. While advancing the merchandise, the chief aim would be create wellness consciousness provide cognition and do people cognizant of the debut of a new extremely alimentary and healthy milk based drink, Le Shock.
Promotional mix: Frezi dairy would make hoardings and postings, which would be placed near schools, game Centres, shopping promenades, trains, train Stationss and coach shelters. The placing of advertizements would be done around topographic points where the mark age of 5- 15 twelvemonth olds hang around most.
Frezi Dairy would administer Le Shock through jobbers, this would salvage transit and bringing costs as the jobbers would pick up points straight from the mill. However, as the demand for Le Shock grows, the company may make up one’s mind to present to stores and supermarkets themselves.
Furthermore, Frezi dairy has decided to keep back stock after 2 months of distribution to make a deficit of Le Shock in the market. The deficit would convert the clients that the merchandise is good and therefore, when distribution rate returns to normal, more people would be eager to purchase Le Shock.
Hence, Frezi Dairy would let go of merely a limited sum of Le Shock before speed uping rate of production and distribution.
9.0 Research Proposals
The research conducted for the completion of this selling program was fundamentally on-line research on the history of the NZ Dairy industry and the major rivals of Frezi Dairy in the market of milk drinks.
Traveling on, after the launch of the new merchandise, the company could carry on a study on how the people feel about Le Shock. This could assist Frezi dairy better the gustatory sensation and quality of the drink and besides to make up one’s mind on future investings sing the merchandise.