Professional Documents
Culture Documents
Individual Report
Acknowledgment
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Contents
Acknowledgment ........................................................................................................... I
Contents ........................................................................................................................ II
Figure Contents ............................................................................................................ IV
Table Contents .............................................................................................................. V
Declaration ................................................................................................................... VI
Executive Summary ................................................................................................... VII
1.0. Introduction ......................................................................................................... 1
2.0. Critical demonstration of relevant knowledge of the current position Luckyland
Products.......................................................................................................................... 3
2.1. Understanding the Consumers Mind - Perceptual Mapping ............................... 4
2.2. Value Proposition Analysis ................................................................................ 6
2.3. PESTEL Analysis ............................................................................................... 7
2.4. Past Sales Performance of Luckyland Products .................................................. 8
2.5. Market Shares and Market Growth Analysis ...................................................... 9
2.6. Porters Five Force Analysis .............................................................................. 10
2.7. Analysis on Luckyland Products with the respect to Competitors Products .... 11
3.0. SWOT Analysis and Identification of Workable Opportunities ........................... 12
3.1. SWOT Analysis ................................................................................................ 12
3.2. Identification of Workable Opportunities ......................................................... 14
4.0. Qualification of Opportunities by Setting SMART Objectives ............................ 15
5.0. Application of ANSOFF Model on Lukyland Products ....................................... 16
6.0 Segmenting, Targeting & Positioning.................................................................... 17
6.1. Market Segmenting ........................................................................................... 18
5.1.1. Demographic Segmentation ....................................................................... 18
6.1.2. Psychographic Segmentation ..................................................................... 18
6.1.3. Behavioral Segmentation ........................................................................... 19
6.1.4. Geographical Segment ............................................................................... 19
6.2. Targeting ........................................................................................................... 20
6.3. Positioning ........................................................................................................ 21
7.0. Marketing Mix – Applications of 4Ps of Marketing ............................................. 22
8.0. Development of an Execution Plan and Marketing Budget .................................. 25
8.1. Time Schedule for Major Activities ................................................................. 26
8.2. Forecasted Marketing Budget for Upcoming Two Years ................................. 29
8.3. Forecasted Financial Statement ........................................................................ 30
9.0. Identification KPI’s & Suggested Performance Management Plan ...................... 31
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Figure Contents
Figure 20- Four Stages of the Marketing Execution Process (Murphy, 2014). ........... 25
Table Contents
Table 10- Forecasted Financial Statement for Year 2017 & 2018 .............................. 30
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Declaration
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Executive Summary
This market research report is from one of the marketing consultants form a task force
which is on a procurement drive of a Brand. This report is illustrating about
Luckyland Products which is a declining its profile in the industry. This report
provides two years of time schedule for major activities and future cash flows through
a well-constructed marketing plan. The report illustrates the beginning about
situational analysis of the current product with the current competitors, and the market
share and market growth of their products which indicates that there are two major
key players in the market Maliban products & Munchee products their market share is
high comparing Luckyland and other brand products also. Company’s sales units are
dropping and net profit also dropping because the company is not well-updated with
current market trend. The company has lots of opportunities in the industry, this
company is running more than fifty-five years. Capturing certain majority of the
customers, but sales are dropping in recent past years onwards because of new entries
and improper distribution channel.
If the company wants to earn more profit and sell many outputs company have to do
proper segmentation, target the market and do an appropriate positioning. According
to ANSOFF Matrix, which clearly illustrates about the company’s existing market and
existing product status. It is better to introduce existing products to new markets by
proper segmentation. Finding new places and customers to sell their products, finding
a new distribution channel to sell their products. The Company can do product
development by selling new products to existing customers from creating awareness
through an appropriate market research and development activities. It is better to
reduce the maximum risk. Therefore, company should give much concentration on
market development and product development. Company should not give
consideration for diversification because it very risky. Company should follow
marketing mix strategies. Senior management should be more aware on their product,
price, place and promotion with competitors’ products. Key performance indicators
(KPI) of Luckyland should be based on the marketing objectives. KPI should cover
performance of the company, performance of the employees, and performance of
customers with standard factors.
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Finally report illustrates the reasonable conclusion made based on the relevant Data
from the industry. Therefore, it is up to the top level management decide to procure
Luckyland Brand.
1.0. Introduction
Sri Lankan Biscuit Industry plays significant role in the country’s business &
economic development. Biscuit production also plays a significant role in FMCG
(Fast Moving Consumer Goods) Line and attracting all kind of age groups and it is a
main source of wide-ranging employment openings. Consumption of biscuit products
has dramatically increased when the Sri Lankan government adopted new open
economic policies (Business Today, 2009). The quantity of biscuit products
consumption by customers in Sri Lanka is 43,964 metric tons per year and its value of
the products is around Rs.17.76 billion (Anon, 2016).
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When considering to Sri Lankan market for Biscuit & Cookie Products, customers
always searching for good quality of tasty products, comprising with various flavors,
which can purchase at a reasonable price and can be acquired in various categories
(Low Sugar, Puffs, Carols, Herbal, etc.). Only very Few customers search for famous
brands.
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Luckyland biscuit & cookies are come with several flavors, which is clearly illustrated in
the below mentioned Figure No.02.
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In the financial years 2013/2014 & 2014/2015 Years indicate that sales declined to
400 Million Rupees and 350 Million Rupees from budgeted Sales. Therefore, charts
Indicate negative impact for organization growth which ultimately effects the
company’s profitability, efficiency, liquidity and solvency ratios in negative way.
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As described before in above figures; Figure No.03, 04, 05 & 06 that clearly
illustrates that Munchee manufacturing and Maliban manufacturing Company are two
major players for Biscuit and Cookies products in Sri Lanka. When considered about
price, taste, different flavors, various categories and availability in retail shops they
are highly influential but hygiene is equal for Munchee Products, Maliban Products
and Luckyland Products but other different brand company products are slightly low
in hygiene. Above mentioned figures; Figure 10 illustrates the market shares of
Biscuits and Cookies Products from Munchee Company, Maliban Company,
Luckyland Company and Other Brands Companies. According to the last three
financial years clearly indicates that market shares of Munchee company Products
increased from 54.45 % to 55.75% as Positive growth, market shares of Maliban
company Products increased from 30.55 % to 29.25% as Negative growth, market
shares of Luckyland company products increased from 8 % to 6% as Negative
growth, market shares of Other different brand products increased from 7 % to 8.75%
as positive growth. Which clearly indicates that the profit margin for Munchee
Company Products and Maliban Company Products are high but Luckyland is low.
Actually, Munchee & Maliban companies are having their ability to obtain higher
level of profit margin because of the economy of sales. However, Luckyland
company products are in the business more than fifty-five years but they don’t
succeed effectively expanding business with suitable marketing strategies for
competing in the current business market.
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SWOT analysis gives a clear perspective of external & internal situations for the
organization, which plays a major role in strategic planning process (Anon, 2010).
Internal factors which influence the organization are known as; Strength (S) &
Weakness (W). External factors which influence the organization are known as;
Opportunities (O) & Threats (T) (David, 1993) .
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Throughout the past fifty-five years the company has not attempted to expand their
marketing channel & operations effectively by not moving out from comfort zone,
therefore, the competitors use this as advantages and capture the new market places
and expand distribution channel. Luckyland should do some strategic planning to
expand their market and make sure that their products should be available in every
retail shops in Sri Lanka. If the Company considers these social media in their
marketing plan, and if they utilize effectively, they can attract more customers.
If the company mainly considers opportunities and threats, there is a chance to survive
in the competitive market, to sustain in the market company should develop some
innovate ideas on products, establish the distribution channel, find new place for
opportunities and keeping update to the current market situations. Company should do
advertisements, promotions, campaigns to make aware of their products to their
customers and attract them to purchase on the Biscuit and Cookie products. Company
also should identify their weakness and also rectify them in a proper manner.
customers and attract them to purchase on the Biscuit and Cookie products. Company
also should identify their weakness and also rectify them in a proper manner.
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Market Segmentation, Targeting, and Positioning (STP) all together include a three
stage process which is a familiar strategic method in Modern Marketing (Hanlon,
2013). Luckyland Products Manufacturing Company first determines which kinds of
customers are available and where they are mostly available, then choose which ones
(categories) are worthy of trying to serve and, finally execute segmentation by
improving company’s biscuit & cookie products and their services for that segment
and communicating that they have made the decision to distinguish themselves in an
appropriate way
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There are four major types of market segmentations and it should be strictly
considered by Luckyland Company because company’s product and brand matters for
the customers. Therefore, company should divide the customers into groups of people
with mutual requirements & characteristics. This allows company to tailor their
approach to encounter each group's requirements cost-effectively, and this will
provide the Luckyland company a huge benefit over its major competitors
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6.2. Targeting
Luckyland Products Manufacturing Company should choose to target one or more
market segments, and their choice should normally count on several aspects. First,
company must know how well are existing segments served by other manufacturers
by market research. It will be more difficult to appeal to a segment that is already
well served because Munchee and Maliban the main key competitors in the Biscuit
and Cookie Business therefore company have to find an alternative; that is finding a
segment whose requirements are not being served well currently. Secondly,
Luckyland company has to identify how large is the targeted segment, and how it can
be developed. Thirdly, company has to evaluate that they have strengths which will
help them appeal particularly to one group of consumers. Therefore, company should
earn a reputation.
Sri Lankan target market for biscuit and cookie products industry consists of lower
income class people to upper class customers. Luckyland market their products
especially form lower middle class to upper class customers. Previously their market
segmentation method will be general strategy, even though mass marketing generates
low costs, low margins and volumes. Segment Marketing will generate a fine tuned
product contribution and price for the target segment.
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6.3. Positioning
Positioning is a one of key component in modern strategic marketing, Positioning is
involving in implementing the company’s targets, Luckyland products manufacturing
company focuses on how the Sri Lankan customers ultimately views their biscuit &
cookie products in comparison to company’s key competitors’ biscuits & cookies
products Brands and it is important in attaining a competitive advantage in the Sri
Lankan market. Luckyland company can focus on three kinds of positioning which
are major factors in positioning their biscuit & cookie products brand to a competitive
gain such as; functional positioning, symbolic positioning, and experiential
positioning.
As a functional positioning company should be focus on the features of the biscuits &
cookies products which can satisfy customers’ needs and wants. As a symbolic
positioning, it is based on the characteristics of the biscuits & cookie products brand
which can satisfy consumers’ self-esteem. As an experiential positioning, it is relying
on the features of the products brand which arouse the emotional or sensory
connection with their product consumers. The integration of these three positioning is
the key to positioning the product brand at a competitive advantage to its direct major
competitors.
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Below mentioned Figures No 17 & 18 illustrate the current position of the product
with its major competitors and proposed posed position of Luckyland brand products
after the development with its major competitors respectively.
Figure 17 - Current Position of the Product Figure 18 - Proposed Position of the Product
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Below mentioned Table No.7 clearly illustrate the Application of 4Ps on Luckyland
Products.
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Figure 20- Four Stages of the Marketing Execution Process (Murphy, 2014).
Abovementioned Figure No.20 clearly illustrates the Four Stages of the Marketing
Execution Process. Marketing business has four stages such as; plan, execute, track
and measure (Murphy, 2014).
Luckyland company should create a simple marketing plan The plan and it helps to
understand how each and every activity works in collaboration with other marketing
activities, Execute the marketing activities consistently and create an appropriate
system for tracking marketing effectiveness. Review at least quarterly to see how
your activities are working.
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There are some certain activities are needed to be completed as soon as possible in order to proceed with spending time and recourses to events.
Activities are beginning with forming groups and end with annual performance review meetings with the board of directors, which are carried as
a routine out for two years. According to the schedule they have to introduce new flavors in various categories according to current trend in each
year and it is important to get customer feedback from market quarterly and then make some improvements accordingly and they have to their
promotion strategies in order to create awareness about their products to customers.
It is very important to track and monitor and control the scheduled plan with actual plan results. Problems can generally arise during the
execution therefore, it’s necessary to conduct weekly or monthly sales and marketing team. Conduct Management Team Meetings Quarterly.
The programs will be revised due to major changes during each year at the Annual Performance Review Meetings.
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According to the company’s objectives; it targets to achieve Net Profit Ratio as 33%
in Year 2017 and further increase to 35 % in Year 2018. Some Assumptions are made
in preparing forecasted financial statements such as; Luckyland product prices will
not change for upcoming 2 years and there will be no Tax increment imposed by
Government.
Table 10- Forecasted Financial Statement for Year 2017 & 2018
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Key Performance Indicators (KPI) also known as key success indicators, they are a set
of measurable actions which an organization practices to gauge its performance over
time period (Reh, 2016). These metrics are used to control the organization's progress
in attaining its operational and strategic targets, and it is also used to compare an
organization's performance and finances against other organizations within its
business sector (Anon, 2016).
As well as, there are some KPI which can be used to relate the employees such as;
Rate of Employee Turnover Rate & Employee Satisfaction in order to find out about
the Employees related performance indications. Positive performance indicates
growth of productivity and contribution of business process.
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Business Organizations generally driving with business pressure and always focus on
operational performance and development of Key Performance Indicators (KPIs) is the desire
to raise perceptibility of operational performance to the employees. Organizations are not
only establishing KPIs to evaluate the performance of the company over a time but also
gaining comparative capabilities with the intention of ensure that performance measures are
in configuration across the organization (Ulistic, 2014). Having interviews with company’s
executives are not adequate to define the KPIs and track them over the time. They also
needed to recognize how indicators relate to company’s marketing & financial objectives and
how this performance compares with competitors. This can be attained from membership and
connection with industry trade association, and combination data from industry aggregators
and generally integration of data which can be gained from government firms, some
companies are most likely to establish KPI across a wide range of operational areas of the
organization (Reh, 2016). Further, Luckyland Operational areas need to be improved.
Use of performance metrics across a various of business operation areas, that can be used for
Luckyland company are mentioned below in the table;
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Table 13- Performance Management – Review & Control
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Recommendations
Above mentioned Table No.14 clearly illustrates some recommendations for
Luckyland Company, which should be considered for their development.
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Conclusion
This report is illustrating about Luckyland Products which is a declining its profile in
the industry. This report provides two years of time schedule for major activities and
future cash flows through a well-constructed marketing plan. The report illustrates the
beginning about situational analysis (both internal and external analysis) and their
present position. Company’s sales units are dropping and net profit also dropping
because the company is not well-updated with current market trend. Company has lot
of opportunities in the industry. Luckyland sales are dropping in recent past years
onwards because of new entries, improper product distribution channel weak
promotion strategies. It is better to introduce existing products to new markets by
proper segmentation. Finding new places and customers to sell their products, finding
a new distribution channel to sell their products. The company can do product
development as introducing new products with various flavors and also if the
company to introduce different type of categories of biscuit and cookie products, in
various volumes by selling new products to existing customers which will attract
many customers including younger generations by creating awareness. Company
should give much concentration on market development and product development.
Senior management should be more aware on their product, price, place and
promotion with competitors’ products. Performance management plan should satisfy
KPI’s which generated from the company’s marketing & financial objectives.
Company should do proper survey and get feedback from customers and do
improvements if required. Check the Actual Progress with Forecasted Plan. They
should track, monitor and control the activities the during the progress to check
whether they are on track or not
The Firm Can Acquire the Company (Luckyland Brand), because of the current
opportunity in the industry, and there is good name for their products in the industry,
there is certain amount of demand for the products. However, company’s sales &
profit are reducing but till now it didn’t face any major crisis that could create a huge
negative impact on people and organization. Therefore, it is better to acquire the
company. However, the Firm has to initially invest funds for the Re-Engineering of
organizational structure and innovation of new products, developing expanding the
distribution channel, promotion of their existing and new products and campaigns and
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also for sponsoring events. Company has well experience workers and new
machineries up to the standard which can be used for manufacturing new products.
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Reference
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