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Appendix Marketing Assessment Tool
SUMMARY
PRODUCT / SERVICE DESCRIPTION
Core product: Daily use productActual product: dairy product, tetra pack milk.Features: UHT processed milk available in 250 ml ,500 ml ,1 ltr ,1.5 ltr. targeted towards allages.Benefits: Stronger bones, enhance metabolism, source of iron.Attributes: Proteins, phosphorus, calcium, potassium, riboflavin, lactose, iron, fats.protection oftetra packaging with all the nutritional facts written on it.
POSITIONING STATEMENT (this is your elevator pitch)
For: The overall market including children, youth, adults and families
Who are dissatisfied with:
Taste: minimum dislikingQuality: more quality dissatisfactionPrice: cheap
Our product is: Pure milk to satisfy customers health conscious need with great taste and
energy.That provides: it provides quality, health, energy andhappiness.Unlike: milk mans unhygienic and unhealthy milk.We have assembled / We provide: milk obtained from natural dairy farms and healthy cowsand preserved with state of the art technology.
BUSINESS MODEL (how you create revenue: Please refer to the
Handout)
Partner: nil
Distribution: whole sale distribution.
Availability: 80 cities across Pakistan.Manufacturing: Sahiwal, Sukkar by engro food limitedPrice:250ml --20 Rupees500ml 40 Rupees1 ltr 70 Rupees1.5 ltr --96 Rupees
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Size: increase sales of UHT MILK and 23% market share
Revenues: engro foods is 43% of 21billionVolumes: increased by 100% to 12.2 million liters in 2010 from 6.1 million liters in 2009
TECHNOLOGICAL UNCERTAINTIES
If any
Not applicable
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MARKET UNCERTAINTIES
Fierce competition, High tax rate, economical, social and political conditions, law andregulations of the country and inflation are the main factors that affect olper milk.
CHANGES IN BUYER KNOWLEDGE REQUIRED
People prefer unprocessed milk over UHT processed milk because they thought that due to hightemperatures it may lose nutritional contents. Therefore olpers is promoting itself as an healthyand qualiy product.
CHANGES OCCURRING IN BUYER BEHAVIOUR
The customer has a great knowledge about their needs and wants and also know which product isbeneficial and have low cost. Olper is focusing a lot on advertisement and promotional activitiesin order to understand customer needs and wants and make the product accordingly.
MARKET EXTERNALITIES: INFRASTRUCTURE / COMPLEMENTARY
REQUIREMENTS
Not applicable.
MARKETING ASSESSMENT WORKSHEET #1:
MARKETING MACROENVIRONMENT
WHAT ARE THE KEY TRENDS OR CHANGESTHAT POSE THREATS OROPPORTUNITIES THAT AFFECT YOUR INDUSTRY / FIRM INPARTICULAR?
(Including your raw materials, suppliers, production, service delivery, distribution, customers,marketing)
1. Demographic trends
Age (Industrial markets: Industry trends if B2B)
Pakistans ranks 6th in the most densely populated countries of the world. The teenpopulation in Pakistan is also very large and is expected to grow even more. Whereas olpers
milk is 5 year old brand.Total Population of Pakistan is 185 million (July 2010 est.)Urban population 32.52%0-15 years 43.4%16-64 years 53.09%65 so on 3.5%Gender ratio (Male: Female) 108.5:100
Gender (Industrial markets: Firm Size if B2B)
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Not applicable.
Education (Industrial markets: Industry concentration / Mergers and
acquisitions if B2B )
Even though the brand calls for a small percentage of an individuals income but lowerclass wouldnt want to buy the brand maybe because they are price sensitive orbecause they believe lose milk is better than processed milk and has all the nutrientsthat the processed milk lacks. However, olpers milk is trying to change the image ofprocessed milk as nutritionist milk and associated with healthy life style.
Occupation / Employment (Industrial markets: employment if B2B)
The changed workforce will have an effect on the industry; housewives have become workingwomen. Plus the unemployment rate has also increase in the past few years due to the world
wide inflation. Working mothers want healthy as well as attractive food for the kids, healthconscious people prefer it.
Family Size / Life Cycle
Population rate of Pakistan is increasing by 1.8% annually moreover family size and their lifecycle is increasing day by day as a result demand of milk increases.
Urban / Rural / Suburban
Olper was initially launched in 80 cities of Pakistan. It is distributed according to its targetsegments. Olper is available in urban, suburban and rural areas.
Other geographic / location
It is available in 80 major cities of Pakistan.
2. Social trends (values, attitudes, life styles)Pakistan has a feminist society and people prefer to live in a family system and collectivesociety that has a high effect on product. Lower class people prefer to use milkman milk
instead of tetrapack milk because they thought that it is unhealthy and lower nutritionalcontent.The social trends have been changing with the passage of time, different level of lifestyles are followed all over Pakistan. Now adays, people give priorities on the basis ofquality, price, brand recognition.
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3. Economic trends
Incomes
Olper major target market is middle class and upper class whose income level is fromRs. 15,000-Rs. 60,000
Economic Growth
By 2008 per capita income of Pakistan was $1027 that is increasing as 4.3% (2009 est.)3.6% (2008 est.), 1.6% (2007 est.) and industrial growth rate is 4.9% (2009 est.)
Prices
Due to high inflation rate of 14.19%, prices are really high and buying power is less.
Savings / Credit
There is no saving, 24% of population is below poverty line and 15% unemployment
Revenues: $25.33 billionExpenditures: $36.24 billion (2010 est.)
4. Natural Environment
Availability of Natural Resources and Energy
Not applicable
Environmental Responsibilities
To make sure that their operations arent destroying or harming the environment or thehuman beings and animals living near the area. the company has interventions in number ofareas like education, health, environment, sports, and infrastructural improvements
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5. Technological Trends that affect your firm or industry
The technology that engro is using is a modern technology but market has to be monitoredfor any technological change to gain competitive advantage over the competitors. In year2005, the Ministry of Industries and Production established Dairy Pakistan Company on thelines as the model of Dairy Australia.
6. Socio- Political
Ethical standards
Olper has developed its strategies according to the culture of Pakistan and has been workingon it.
Political
The political situation is not stable, the law and order situation is extremely poor. Highinflation rate has bad effect on purchasing power.
Regulatory
Industrial growth rate is 4.9% (2010 est.) due poor economic situation and industrial regulations that areextremely weak.
MARKETING ANALYSIS WORKSHEET #2:
MARKETING TASK ENVIRONMENT
1. MARKETS (industry as a whole)
Description Segment #1 Segment #2 Segment #3 Segment #4
Size:
Current
Kids (5-15 years)Urban, suburban,rural.
Middle, high class.Health Fun andenjoyment
Youth (16-25 years)Urban, suburban.Upper and middle
class. Luxurious lifeStyle, excitement
Adults (26-60 years)Urban, sub urbanUpper and middle
classDiet and healthconcious
FamiliesUrban andsuburban
Upper andmiddle class
Growth forecast
Pessimistic
Mid range
Optimistic (why?)
43.4% of totalpopulation.Urban populationoptimistic
36 million of totalpopulation
Mid range
High growth Stable
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Geographic
distribution
(where?)
Urban, sub urban, Urban & suburban Urban Suburban
Profitability
(how?)
Medium
Sales:Revenues:
High High High
Product Lifecycle
Product Adoption
Stage (if
applicable)
N/A N/A N/A N/A
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2. COMPETITORS
Competitor #1 Competitor #2 Competitor #3 Competitor
Performance/
Trends
Nestle milkpakmarket share -- 43%
Good MilkMarket share 16%
HaleebMarket share 13%
OtherMarket share
5%
Key Strengths
(Core
Competencies)
Financially Strong.Wide distributionand distributionchannels.High brand equity.
Strong consumerand productresearch,Latest plant,Good relations withfarmers.
Latest technologyfor milk processing,Best qualitypackaged milk,Strong brand image,
Key Weaknesses Narrow TargetMarket,Low Advertisement,
Low quality,Milk collection cost,Distribution cost.
No advertisement,
Strategic Alliances High reputation andimage
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3. CHANNELS
What are the trends for distribution? How are channels changing?
People have a great knowledge about their needs,wants and the product he/she going topurchase. in now adays competition is so high that creating a channel for customer is not a
good strategy but make a strategy so strong that customer gain maximum attention and forcethem to buy your product through own channel.
4. SUPPLIERS
What trends are affecting suppliers?
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MARKETING ANALYSIS WORKSHEET #3:
CUSTOMERS
1. Who are your potential customers?
Segment #1
(Kids)
Segment #2
(Youth)
Segment #3
(Adult)
Segment #4
(Old age)
Size
# customers
(estimate)
potential sales $
(estimate)
possible
penetration
(why?)
Changes
Low usage
Little changebecause usually kidsfeel irritating todrink milk.
High usage
Little or no changes
High usage
Little or no changes
High usage
Little or nochange
Usage
characteristics
(how much?When? for What
purpose?)
Twice a day,usuallyused in breakfast
and after playingphysical games,before sleep in orderto gain energy.
2-3 times in aday,used in
breakfast, afterplaying a physicalgame in order togain energy.
Once in a day atbreakfast for healthy
life.
3-4 times aday, at
breakfast, atlunch somehand beforesleep.
Relationship
issues/ Potential
Not applicable Not applicable Not applicable Not applicabl
Key BenefitsSought
Health and energy Health and energy Health and energy Health andenergy
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Segment #1 Segment #2 Segment #3 Segment #4
Purchase
Motivations
(Maslows)
Physiologicalneeds
Physiologicalneeds
Physiological needs Physiologicaneeds
Product
Involvement / Risk
High Low Low Low
Adoption Issues
Relative
Advantage(s)
Complexity
COMPLEMENTARITY
How does theproduct
complements
the main
product or vice
versa?
N/A
Milk shakes, cornflakes, cereals,custards, ice cream
N/A
Tea, desserts, milkshakes
N/A
Tea, desserts, milkshakes
N/A
Porridge
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2. Customers Purchase Decision Process
Purchase Decision
Process
Segment #1 Segment #2 Segment #3 Segment #4
WHO DECIDES- Parents/guardians Themselves Themselves themselves
NEEDRECOGNITION
(when, where,
how?)
At breakfast, inevening and beforesleep.
At breakfast, afterplaying games,before sleep
At breakfast andsometime beforesleep
At breakfast,evening andbefore sleep
Information
Search
(what, where,
when, how, how
much?)
Through ads andparents
Throughadvertisement andsomehow frompackaging
Throughadvertisement andsomehow frompackaging
Through fammembers,advertisemenand somehowfrom packag
Product
Evaluation
beliefs aboutproduct
benefits / costs
value /
importance of
benefits / costs
price
sensitivity?
Not so much
attractive inchildren.
Less value
Less
Status and health
consciousnesspopular due to goodtaste and nice look
More value
Less
Concerned toward
taste and ingredientdue to healthconsciousness
More value
Less
Healthconsiousness
More value
Less
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Customers Purchase Decision Process continued
Purchase Decision
Stage
Segment #1 Segment #2 Segment #3 Segment #4
Product Choice
purchase
situation
Parents or guardian Youth bythemselves
Adult by themselves Other familymembers or O
age
POSTPURCHASE
satisfaction
post purchase
activities
repeat
purchase
loyalty
Satisfied because ofhealth factor
Nil
Yes
Maximum Loyalty
Satisfied because ofstatus and luxuriouslifestyle and healthfactor
Nil
Yes
Moderate loyalty
Satisfied because ofstatus and luxuriouslifestyle and healthfactor
Nil
Yes
Moderate loyalty
Satisfied becof health fact
Nil
Yes
Maximumloyalty
Demographics
age
gender
family
income
education
location
5-15 years
Male and female
Middle, higher
N/A
5th to 8th grade
Urban,
Suburban.
16-25 yearsMale and female
Middle, higher
15000-25000
Matriculation
Urban and suburban
26-50 yearsMale and female
Middle, higher
30000-50000
Intermediary,bachelor, master orany other.
Urban and suburban
51-65 yearsMale and fem
Middle, high
15000-50000
Not applicab
urban andsuburban
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Social/ Cultural
Traits N/A Influenced bymodern orwesternized culture
Social impact Social or traditional im
Values/ Lifestyle
N/A entertaining,excitement,adventurous
Sophisticated,humble, decency,mature
Unity,collectivist ajoint familiessystem.
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MARKETING ANALYSIS WORKSHEET #4:
MARKETING RESEARCH
SECONDARY MARKET RESEARCH:
SOURCES EXAMINED SOURCES TO BE
PURCHASED / ORDERED/
FOUND
INDUSTRY CONDITIONS
CUSTOMERS IN
GENERAL
CUSTOMER NEEDSCUSTOMER BEHAVIOUR
COMPETITORS
POSITIONS
COMPETITORS ACTIONS
MARKET DEMAND
FORECASTS
PRIMARY RESEARCH
QUALITATIVE QUANTITATIVE
CUSTOMER NEEDS /
MOTIVATIONS
CUSTOMER DECISION
PROCESS
BENEFIT EVALUATIONS
CONCEPT TESTS
PROTOTYPE TESTS
METHODS
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2. Total Product / Service
YOUR FIRM Competitor #1 Competitor #2 Competitor
Product Line
(# offerings)
Brand Names
Awareness /
recognition
Value
Associations /
images
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Product continued
YOUR FIRM Competitor #1 Competitor #2 Competitor
Core Benefits
Features
Quality
Reliability
Consistency
Friendly
Trust
Responsiveness
Customization
Brand Personality
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After sale
Warranties /
guarantees
Service /Support
3. Pricing
YOUR FIRM Competitor #1 Competitor #2 Competitor
Product / Service
Price(s)
Other Costs
(delivery )
Perceived Value
Discounts / Price
Promotions
(who, how, how
much, when?)
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5. Advertising and Communication
YOUR FIRM Competitor #1 Competitor #2 Competitor
Promotion
Objectives
Awareness
Knowledge
Liking /
Preference
Reminding
Media (use /
message)
TV
Radio
Internet
Direct Mail
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Advertising / Communications continued
Public Relations /
Publicity
Trade shows
Events
Partnerships
6. Sales Force
YOUR FIRM Competitor #1 Competitor #2 Competitor
Organization / Size
Training
Motivation
Team support
Relationship
quality
Effectiveness