Sunday, July 17, 2011

Marketing Plan

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NOYNOY Family is a high pasteurized milk, produced under the innovative Flash Production Technique which heats milk for only a few seconds at a temperature of 140 oC instead of 75 oC used for fresh milks. This implies that our product lasts longer (up to 45 days after production), while retaining all nutrients and vitamins which characterize the fresh milk. NOYNOY Family, which was first launched in Greece in the end of 16, is a product of Friesland Hellas S.A. and is imported from the parent company F.C.D.F. located in the Netherlands.

The milk industry in Greece is a very competitive one, dominated by a limited number of firms. The most important ones - mainly our main competitors - are Delta, Fage, Mevgal, Agno and Nestle. The milk market is an oligopoly where the product is rather homogeneous, but rather differentiated in terms of processing, content of nutrients, enrichment with vitamins and duration. Moreover, milk is subject to local and European legislation. Specifically, according to the European quota, Greece cannot produce more than 750,000 tons of milk, an amount not adequate for local consumption. Therefore local firms are obliged to import an almost equal amount of raw material for their production.

An important consideration to be kept in mind is that there are some recent trends favoring the demand for milk more health oriented consumers, a shift from evaporated towards fresh milk, as well as recommendations form doctors stating the beneficial influences of milk.

One of our products most important competitive advantage is that NOYNOY is a well established brand name in Greece for the last 50 years. However, NOYNOY Family has not yet performed as expected in terms of market share (6% in 1). Our goal for the year 2000 is to expand our market share to 10%. For this reason, we have expanded the target market to include not only housewives, but also working women having a family, single persons and students who live on their own. We further change the packaging to an easier to open one and make the brand name NOYNOY appearing on it more visible. In order to inform and persuade our target market for the competitive advantage of our product, we employ an aggressive promotional campaign which includes heavy advertising, sales promotion and public relations events. Finally, we propose a decrease of the cost structure of the product by establishing local production through acquiring a local competitor. This action will result in increased gross margin for Nounou Family, with a further potential to increase its price. At the end of the plan potential implementation problems are tackled and competitors’ response is anticipated.


TABLE OF CONTENTS

Executive Summary
Table of Contents
I. Introduction
A. What is the Product?
II. Situational Analysis
A. The Situational Environments
1. Basic Sector Characteristics
2. Product Categories
3. Demand and Demand Trends
4. Demographics
5. Economic and Business Conditions
6. Laws and regulations
a. Production Quota
b. Milk Duration
7. Problems and Perspectives
a. Problems
b. Imports
B. Milk
1. Milk and its Benefits
2. Milk Processing
C. The Neutral Environs
1. Financial Environment
2. Media Environment
3. Advertising Expenditures
4. Special Interest Environment
D. Competitive Environs
1. Identifying the Competitors Industry
a. Number of Sellers and Degree of Differentiation
¨ Delta Dairy SA
¨ Fage SA
¨ Mevgal
¨ Nestle Hellas
¨ Agno Milk Industry
b. Entry Barriers
c. Exit Barriers
d. Cost Structures
e. Global Reach
f. Porters Model of Competitive Analysis
g. Market Shares

a. Fresh Milk Category
b. High Pasteurized Milk
c. RTD Milks
E. The Company Environs
1. About FCDF
2. About Friesland Hellas
3. Products
4. Organization
5. Distribution

III. Target Market

IV. SWOT Analysis
A. Strengths
B. Weaknesses
C. Opportunities
D. Threats

V. Positioning and Competitive Advantage

VI. Marketing Objectives and Goals

VII. Marketing Strategy
A. Product Life Cycle
B. Marketing Strategy

VIII. Marketing Tactics
1. Packaging
A. Product
B. Place
C. Price
D. Promotion
1. Current Promotional Program
2. Pull Strategy
3. Sales Promotion
4. Advertising
5. Internet Site
6. Public Relations Activities

IX. Implementation and Control

X. Summary

XI. Sources


I. INTRODUCTION

WHAT IS THE PRODUCT?

NOYNOY Family belongs to the high pasteurized category of milk. It is produced according to the new pioneer method of instant sterilization. Under this method called Flash Production Technique- milk is heated in high temperature (140 0C) by jetted vapor for only a few seconds. This production method differentiates NOYNOY Family from long life UHT milks for the following reasons

· It retains its full and fresh taste compared to the “burnt” taste of long life milks.

· It has to be kept refrigerated to avoid taste deterioration. Friesland pays much attention to this fact, because if the product is exposed to ambient temperature even for a short time period, its taste will deteriorate at a 0%-40% which is unacceptable for the high quality standards set by the company.

· It maintains all its nutrients.

It lasts 45 days after the production date without the use of preservatives.



II. SITUATIONAL ANALYSIS

A. THE SITUATIONAL ENVIRONS

BASIC SECTOR CHARACTERISTICS

The sector of dairy and milk products is listed among the most important and dynamic ones in the Food Industry. It is a sector of major interest, because of the following reasons

- Important size and contribution to the Greek Food and Beverage Industry as a whole.

- The evolution that takes place in its internal framework.

- The participants are some of the most prominent companies in our country.

The market in question is one of the most competitive ones, as far as markets for consumer products in Greece are concerned. It comprises of a few big and modern manufacturers (Delta, Fage, Mevgal, Agno, Friesland and Nestle) - which produce and distribute a variety of products - along with other middle or small companies that operate and compete mainly in small local markets.

The main elements of development in this sector are the following:
a. New investments (especially by big companies)
b. Creation of new innovative products.
c. Expansion of the domestic distribution channels, and an attempt to reach more distant points of sale across the country.
d. Significant size of exporting activity.

PRODUCT CATEGORIES

A late presidential decree brought forward by the ministry of Agriculture, prolongs by one day the expiring date of fresh milk while at the same time is changing the names of the pasteurized milk with a life up to 5 days, to fresh milk. Furthermore the label fresh is to be removed from the high pasteurized milks. Milk which has had Ultra Heat Treatment must carry the label UHT so as to avoid any chance of confusing it with milk which can be preserved outside the refrigerator. Milk such as evaporated are to labeled as milk preserved outside the refrigerator for long periods of time.

Thus we have

· Pasteurized (fresh) milk

· High pasteurized milk

· UHT milk

· Evaporated milk



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