IDEA OF THE PRODUCT:
Snacking foods generally perceived to be being high on fat and salt which has raised the fear of unhealthy habit in the consumer¶s mind. Consumers are now searching for snacks with low-fat, low-calories, and healthy composition. With the rise in the concern of consumer¶s health, it is more worth full and profitable to give the customer what they want. So the company MILKYWAY wants to launch a chips which has all the quality and the goodness of milk. The company wants to target the kids of age group between 2 ± 14. Snacks can, and should, be a part of every child's balanced diet. An afternoon snack will give kids more energy after school, and they'll be able to concentrate on homework, and have more energy to play outside rather than merely flop down in front of the television. It's easy to equate snacking with junk food, but it doesn't have to be the case. The important thing is to provide kids with choices when it comes to snacking. If all the choices you give them are reasonably nutritious ones, then everybody's happy:
Snacks are a part of Consumer Convenience/ Packaged Foods segment. Small quantity of food can be taken between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, Namkeen and other light processed foods India along with other Asian countries will be at the forefront of growth expected in the global snack foods market. The sector is estimated to grow to $300bn by 2010. Growth in the Asia-Pacific region will be driven by the region¶s high population density, strong economic growth, rising disposable incomes, liberalized import policies and greater willingness to shift from traditional food to western diets and growth will be driven by demand for healthier
products, changing lifestyles and the consumer¶s growing affinity towards convenience foods specially in developing markets. These all indication helps us to predict the growth rate up to 6-7% in terms of volumes by 2010. Though very large and diverse, the snacks industry is dominated by the unorganized sector According to a survey almost 1,000 snack items and 300 types of savories are sold across India. The branded snacks are sold at least 25% higher than the unbranded products Savory snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at tea time. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance industry. he been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food companies that are looking at bigger shares and in the branded snacks market, to get down to basic.
As we have new product plan which, is different than existing products in snack industry. But still we will have a competition from different product category. Pepsi co.:- Frito Lay, Aliva Britannia GSK: - nutria bar Parle product: - Monaco smart chips ITC snack product
And some regional strongholds :Haldiram¶s, Bikano and Balaji, .
Pepsi co. at 45%, Haldiram¶s at 27% ITC at 16%. The rest is divided between a handful of new entrants, wannabes and many regional players.
lay's Haldiram ITC Others
SEGMENTING AND TARGETING
Segment and target identification:-
INDIAN POPULATION STATISTICS
5% 31% 0-14 15-64 above 65 64%
In India the population of children from 0 ± 14 years is 31% (362,874,979)[according to 2009 census]. The sector with age group from (0-14) is a very good sector to target. The sector from (15 ± 64) is very huge but main intension for selecting children is from internal and external survey. INTERNAL SURVEY:- A survey has been made with in the product designing team and marketing team and selected the sector of children as they are more enthusiastic towards snack food. EXTERNAL SURVEY:- The reason for selecting milk chips is due to the results from external survey . While conducting survey the main response from parents is, they want to feed their children with more protein food and their children are not willing to have milk directly .they tried other chips for nutrition food and got disappointed. When we delivered milk chips idea to them we got a very good response and they feel very happy.
Segment attractiveness:We are using funky cartoons and attractive packaging to get more children towards our milk chips product.
Segment profitability:As our products are of high nutrition value and of low cost compared to other chips more people preferred to buy our product, which leads to profits.
Positioning of the product:
Most small businesses can¶t afford to invest thousands of dollars in advertising and promotion every week. They have to rely on making the greatest possible impact with a small budget. The starting point for many of them is a well-thought-out positioning statement that captures the essence of the company and then gets translated into a meaningful and memorable tagline. Milk way faces similar problem. We need to find out the way to communicate and differentiate out product and creating image effective for out buyers. We are launching a chips which is made of milk and contain all the quality and goodness of milk, thus are tag line for the product is ³chips with quality of milk´. Packaging is one of important source of positioning the product. We are targeting children¶s for our product thus we in our product will use funky picture on packet which attracts kids and we will provide tattoos and cartoon pictures with each packet.
The product is relating to the chips industry and our product is not an ordinary kind of snack chips. It is much healthier than other snacks and with zero side effects for children when compared to the snacks present in the market.
4 P¶S Product:
Generally children don¶t prefer to have proper food. And they always like to have some snacks and some chocolates. Because of these most of their parents is worrying about their nutrition and calories. So, we decided to make such a product for children.
Milk chips are a very different product from others. It has its own features and benefits among other snack food. 1. As our chips are made with milk it contains good nutrition. 2. We made milky way packaging is so attractive by providing some funky pictures on it to attract children. 3. Milkchips are crispy n readymade. So it is flexible to use. 4. Milkchips are low-calorie and low-fat item chips. 5. It doesn¶t have any side effects. 6. Milkchips are safe, flexible and feasible to use. 7. We are using triple layer packaging for more safely use.
Milky Way introduced milkchips for children. To available to all children we are providing this for very low prices. For small packet we are charging only 5rs/-.and for big packet we are charging only 10rs/-.
Milkchips is a durable product. After opened it once it will good for health and better to use only on that day.
Milkchips are reliable. These are very easy to eat at anywhere at anytime.
Milkchips is a very stylish product. We made chips in funky cartoons shape to attract children.
Pricing:Pricing has been the major determinate of a buyer¶s choice. Although non price factors have become quiet important in the last few decades, price still remains an important factor in determinate sales and profitability. Milkyway chips primary objective is to survive in this intense competitive snack market. Snack industry has a huge market in India, thus survival is short run will surely lead to growth and profit to the company in long run. Milkyway is introducing a new product in the market and the company wants to position its product on quality and price. The company is not looking in short run. After analyzing of primary data we found that majority of people prefer buying a chips packet of rs10. Que .what price you prefer most for buying chips packet. a. Rs5 b. Rs10 c. Rs15
32% rs10 65% rs15 rs5
Increase in price will effect the firm¶s position as there is intense competition and we have no brand name. On the other hand decrease in price give an impression of less quality product in the mind of consumer and it will also affect the profit of the company. Generally speaking customers are price sensitive for the items they buy frequently and chips come under this category. Moreover cost of the product must be so that it would be convince to the customer as well as the retailer. Eg. Buying a product worth Rs 9, customer has to bring a change of Rs 9 or else the retailer has to give one Rs 1 change if the costumer gives him Rs 10. Thus for the price of Milkyway chips is set at Rs 10 for the convince of our customer and retailer. Analyzing competitor¶s cost, price and offer¶s is vary important in the pricing of product. Milkyway has kept its product price similar to its competitor. As a firm is trying for survival in the snack market we are not concerned about the profit in short run and profit which will be generated in the short run will be used for positioning, advertisement, sale promotion, etc«
PROMOTION:Promotion is like oxygen to any organization to survive, because even though the manufacturer is producing an extremely high quality product it has to be reached to the end consumers and main tool for creating image of the product in the minds of the customers is promotion. SALES PROMOTION:We are conducting promotion campaigns at schools and places where children density is high to promote the product as a TOM brand. We are planning to place the attractive hoardings at the main centers to increase the publicity. ADVERTISING:We created an advertisement with animated kids which will easily attract kids and as our targeted segment is children, this advertisement will help a lot for the promotion of our product. As this product is a new product its promotion should be different from other existing milk chips. SALES FORCE:As our product is a new product. We should appoint a huge number of employees for increasing the sales. Training is given to the sales force not only for attracting kids but also for attracting parents with the quality of the product and explaining the advantages for using this product.
Placing:Making sure that our products reach a large number of costumers we will have a need for efficient and cost effective models of distribution. The distribution system designed for the costumers should balance the costs with the benefits of incremental market penetration. Whenever costumers are buying a product there is completing the last link of distribution channel which runs from the distributor to the costumers. Marketing channels and distribution is an important component in the marketing mix. For the company to reach its costumers it is vary important to select and manage the distribution chain. A firm needs to identify the types of intermediaries available to carry on its channel work. We choose a new or unconventional channel because of the different cost, or ineffectiveness of working with the dominant channel. The advantage is that we will encounter less competition during the initial move into this channel. Milkyway being an FMCG product it has to ensure that it reaches each and every customer in the most possible effective manner. So the company has chosen to type of distribution chain. 1.)
producer distributor(big retail shop) coustmer
The first chain is selective because the big retails shop asks for more profit margins which is around 35 to 40% so to keep the profit margin of the company constant at the same time
retaining its costumers, has reduced 1 intermediate in distribution chain. And this type of distribution calls selective distribution.
The second chain of distribution which is called Intensive distribution which has the whole seller, small retail shop and customers. To reach each and every potential consumers has to supply the product to the small retail shop so for that a whole seller is required who will act as an intermediate between the producer and the small retail shop. Thus it will ensure smooth and steady flow of the product along with reaching more number of customers.