Cargills Coffee And Chocolate Chips Ice Cream

Published Date: 02 Nov 2017

Marketing principles

ICBT Campus HNDBM/46/32

By-V.Karthikan

Acknowledgement

First I would like to thank our subject lecturer Ms. Inoka gunarathne giving us this assignment on Marketing and for offering me fabulous encouragement and guidance to complete this assignment in a best way.

Next I wish to thank our course coordinator Department of Business Management ICBT, for encouraged me to do this assignment effectively.

I take this opportunity to forward my sincere thanks to everyone who gave me a helping hand and who contributed in many ways to make this assignment success.

Next I thank my senior students to give me a grateful knowledge about the assignment.

Finally my thanks to all my colleagues at ICBT, they help me to complete this assignment successfully.

Executive summary

The purpose of this report is to fine marketing strategies to launch a new product at Cargills (Ceylon) PLC

Cargills (Ceylon) PLC is one of the leading diary manufactures who has already won the hearts of various customer segments, when it comes to diary products. Specific objectives were to scan the macro and micro environment, identify the profitable market segment for the new product and develop marketing mix strategies for the same. After an extensive analysis of the market, customer profile, and price criteria, it was determined that launching product to the Market will be best benefited for our future growth.

Cargills (Ceylon) PLC is a leading multinational dairy company and is one of the largest dairy importers in Sri Lanka it owns some of the countries well known dairy brands such as the cargills ice cream. Cargills brands has been a srilanka leader in providing great tasting, nutrition dairy products for more then100 years it also has a very meaningful contribution to enhance the world image of the best dairy produces.

Cargills which stands for high quality ice cream is available in full of country. Cargills which provides many varieties of diary products such as ice cream milk and butter are one of the recognized ones.

Coffee and chocolate chips ice cream is the new product which is been introduced to Sri Lanka by Cargills (Ceylon) PLC under the brand name cargills magic which has positioned it self as one of the best the world over.

Table of contents

Introduction- about new product and company

Task 1.1- various elements in the marketing process and how they impact the choice of marketing decision

Task 1.2- cost and benefits of launching the new product

Task 1.3- micro and macro environmental factors with SWOT analysis

Task 1.4 – segmentation and segmentation factors

Task 1.5- targeting strategy

Task 1.6 – buying decision process

Task1.7 – positioning for the product

Task 1.8 – marketing mix decisions for two different customer segments of my product

Task 1.9 – differences between B2B and B2C marketing

Task 1.10 – international marketing and Changes of domestic marketing mix

Conclusion

Reference

Introduction

This Is My report research about marketing principals. According to that I choose a company and I launching new product. I choose cargills and my new launching product is coffee and chocolate chips ice cream.

Company

Cargills (Ceylon) PLC is a Sri Lankan corporate established in 1844 and built on a strong substance of values and principles. Guided by trusted leadership it spearheads the sustainable development of the food industry in Sri Lanka.

Company History

In 1844, William Miller and David Sime Cargill commenced a general warehouse, import and wholesale business in Colombo, Fort. The establishment was named the 'House of Cargills'. A successful bid by Sir Chittampalam A. Gardiner saw the House of Cargills being incorporated as a Public Limited Liability Company on 1 March 1946.

In 1981 Ceylon Theatres acquired controlling interest of the Company and Mr. Albert A. Page was appointed the Managing Director. Mr. Albert Page went on to become the Chairman of Cargills on 26 November 1982.

Under the new administration, Cargills explored the potential of innovating on its trading legacy. As a result, in 1983 Cargills established the first supermarket chain in Sri Lanka with the opening of its first outlet at Staple Street.

Cargills offered into the production of processed meats in 1993 when the Company invested in its first manufacturing facility Cargills Quality Foods, in Mattakkuliya. In 1996 Cargills acquired the franchise license for KFC and innovated on its secret recipe to deliver products that suited the local palate.

Cargills began sourcing fruits and vegetables directly from farmers in 1999 when it established its first collection centre in Hanguranketha. In 2002 it invested in a dairy processing plant and thereby expanded its outgrower network to include dairy farmers. Cargills Magic ice cream was the outcome of this endeavor. In the same year Cargills diversified into agri-processing with Cargills Kist which created further market opportunities for farmers.

In 2008 Cargills acquired Millers Limited consolidating its marketing and distribution operation.

Coffee And Chocolate chips ice cream

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Cargills coffee and chocolate chips ice cream

Over the past year cargills has introduced brands such coconut ice cream with jiggery and Tango Mango ice cream cargills the brand which is popular among the dairy product has introduced many varieties of ice cream, fruits juice meatballs milk and etc,.by introducing cargills coffee and chocolate under the brand cargills could bring out many advantages to the brand as well as to the company

Cargills coffee and chocolate chips ice cream have some competitors in srilanka also it would be comparatively cheap compared to flavored liquid coffee and chocolate chips.

In only 1l because it’s in the introduction live. After the improvement of sales sizes could be introduced

Ingredients- fresh milk sucrose coffee flavor chocolate chips, nuts vegetable fat permitted flavor [E471,E412,E466,E407] permitted colour [E120, E133,E132] sucrose milk solids sultanas. It I full of protein vitamins and minerals to help keep kids active and happiness. Goodness for all the family.

Task 1.1

Explain the various elements in the marketing process and identify how they impact the choice of marketing decisions

Answer

Marketing process

Situation Analysis

Before marketing planning and decisions, a company should to do research and find the current situation in the organization. SWOT analysis is a one of the way to find out that. SWOT analysis is strengths, weakness, opportunities and threats. The situation analysis is a foundation to any marketing plan and this first thing in marketing process. The business affecting internal external factors are including in Situation Analysis. It’s help to know where are we are now.

Setting goals

Setting goals is one of the most important parts of the marketing process. Goals should be possible to achieve. Goal must be SMART. Smart is Specific Measurable Achievable Realistic Time scaled these are the each letter stands

Marketing strategy

Marketing strategy has to be carried out in order to pursue the company objectives the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for pursuing the opportunity can be developed . The marketing strategy involves in three main areas. Those are Segmentation, targeting, portioning these are involves in marketing strategy.

Implementation and control

Implementation is the process of strategies into action and involves all activities that put the planning to work. Given that few environments are static, the results of the marketing effort should be monitored closely. Continual monitoring and adaptation is needed to fulfill customer need consistently over the long- term

Task 1.2

Evaluate the cost and benefits of launching the new product

Answer

Cost of launching the new product

Have to spend more money for the promotional actives

If there is no demand. Then company will be lost

If competitors try to product similar like our product we cannot earn most profit

There is a possibility to reduce the reputation of the organization by introduce a new product

Benefits of launching the new product

If the new product launch successfully the company revenue will Increase.

If your newly launched product sells well the company Reputation will Increase.

If your company is a startup, a successful product launch the company can generate new partnerships or business relationships

If the new product launch successfully the company will get their target

Task 1.3

Discuss how micro and macro environmental factors impacts the above marketing decision

Answer

Micro and macro factors are impact for marketing decision

SWOT analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

Positive factors

Negative factors

Internal factors

Strengths

Weaknesses

External factors

Opportunities

Threats

SWOT Analysis of company and product

S - STRENGTH

High Experience (100 years)

One of the biggest Dairy Producers

Hold of more than 40% of market share in Sri Lanka

Loyal customers all over the country

Knows how to manage resources without wastage

Fewer competitors

High quality product at an affordable price

Super-store and Outlets located all over the island

W - WEEKNESS

Government regulations for exports (Tax)

Communication/language issues in producing labels to countries

Minimum Resources

Trade Barriers

Undifferentiated products.

O – OPERTUNITIES

Exporting world over

Introducing new products to capture the consumer (coffee and chocolate chips)

There is no the exact substitute for the product available in the market

Capturing extra market share

Increase of dairy products market in Sri Lanka

T - Threats

New competitor

New producers entering the market with innovative products

Price wars with competitors

Limited resources

High cost of production

Inflations in the economy

Competitors have superior access to channels of distribution taxation is introduced on your product.

P.E.S.T.E.L Analysis of Products

P – Political Factors

A political environment could be defined as, government regulations and legal issues and defines both formal informal rules under which the firm is operating in. It is important for Fonterra to have good relationship with the government, and since the government controls legislations such as importing and distributing limitation and product safety and etc. It is important to consider the political; because of the change in political parties might mislead the dairy companies and the legislations. The following political issues should be considered by FBLPL for a smooth business operation in marketing the said products. Tax policy, Employments Laws and so on…..

E –Economical Factors

Economical factors are factors, which should be considered by the company as a whole. The company should not only consider the status of the country environment but also the status of the company. Especially when dealing with foreign countries the company should consider the currency rates of the country and the inflation rate.

S – Social Factors

It’s very important to be socially responsible because it basically creates an image for the company and its brands. At Anchor we take this point as a main consideration to prove our customers with products with the assurance of quality. Which also comprise of demographic, cultural aspects of the macro environment, these factors affect the consumer needs and the size of potential markets. For example the following factors can be said as key aspects,

Health Consciousness

Population growth rate

Age Distribution

T-Technology Factors

Being advance in technology is very important because it basically helps us overcome competitors, saves production cost, money, time and etc. Hence by adopting the new technologies will provide and overall company advantage.

E- Environmental Factors

Environmental regulations will play major roll in this kind of product since our product is basically involve in the milk we will have to consider possible local authorities and other authorities’ interference in purchasing and the inputs and in production line too. Also when dealing with carbonated liquids on Energy drinks, we should undergo environmental friendly concepts.

L-Legal Factors

Legal factors also should be considered. When introducing new products legalization is very important. In fact since this product is sold worldwide rules and regulations of other countries also should be considered.

Task 1.4

Propose the segmentation criteria to be used to market the above product/service

Answer

The process of dividing the total market for a good or service into smaller groups, each of which tends to be homogenous significant aspects this is a definition for market segmentation

Other thing this population of any country is not uniform but consists of millions of individuals. These individuals can be grouped in a large number of ways, according to: gender, age, occupation, family status and size, etc. each group or segment has a unity and distinctiveness which separates it from other segments. If the behavior of a particular group is distinctive then it could have significance in marketing terms. Particular groups could be targeted in the promotional activities of the seller.

Demographic segmentation – demographic segmentation can be divided to age, gender, family size, family lifecycle, education, income, occupation. These are the factors in demographic segmentation. This new product is basically aimed at all ages. This coffee and chocolate chips ice cream totally new for srilankan markets that’s why we hope all age groupers are like the product. other factors are general segmentation for my product but age segmentation factor is main factor for my product.

Geographic segmentation- geographic segmentation can be divided to region, size metropolitan area, population, climate these are the factors in geographic segmentation. Area wise our main target consumers in city. Reason is this product is distribute to supermarkets and retail shops but in future we are selling our product village area people also. Climate factor also fair for my product because srilanka mostly have summer and hot climate that’s why people like to eat ice cream .This two factors are main segmentation factors for my product. Other two factors are general segmentation factors for my product.

Task 1.5

Choose the targeting strategy to be applied to cater the selected customer segment

Answer

Targeting

Targeting is a important thing in marketing. Before the launching we should know what are our aim and how to get that. As marketer need targeting for can use similar kind of strategies to promote their products within a target market and targeting have three strategies

Undifferentiated marketing

Differentiated marketing

Concentrated marketing

This product would use Undifferentiated Targeting strategy. Because adopts one marketing strategy and hopes that it will appeal to as many people as possible basically undifferentiated marketing is targeting the entire market with one product. It’s sometimes referred as mass marketing.

This product targeting our customer based on ages according to that our major consumers are kids and teenagers. This diagram is explain about it.

Our major target would be the kids and the teenagers because they our basically the lovers of ice cream. So obviously they would preferably like the cargills coffee and chocolate chips ice cream.

Task 1.6

Demonstrate how consumer characteristics impact on buying the product/service you have chosen and the ‘buying decision process’ a positioning for the product/ service

Answer

Consumer buying process

Collect information about the product

Identified the need and the problems of the product

Find out the alternation about the product

Post purchase evaluation

purchase

The above chart will give brief idea about consumer buying decision process.

Need recognition & problem awareness

At the time of buying a product first and foremost consumer should have awareness of the product that’s why the first step will be need recognition. The consumer should understand about the problems of product when they start to use.

Information search

The next step will be collecting information about the product to conform those products are good to use or not also consumer try to collect more information to understand completely about the product.

Evaluation of alternatives

Third step will be evaluation of alternatives that means consumer try to find out another product which will have similar features like a product which they like to buy.

Purchase

The fourth step will be purchasing a particular product after considering all those three steps.

Post-Purchase Evaluation

The final step will be post-purchase evaluation that’s mean consumer will evaluate the particular product will fulfill their needs or not

Proposed positioning

For our product the following positioning will be useful

Task 1.7

Propose a positioning for the product/ service

Answer

Identifying the product which is demand by the customer

Identifying the product feature

Identifying the target audience

Unique selling plans

Know your opponents

Never compromise on quality

Step one

Identifying the product which is demand by the customer

The first step of positioning will be identify the needs of the customer

Step two

Identifying the target audience will be the second step because different customer can have different taste and preferences because we can’t expect all customers will accept same features.

Step three

Identify the product features

The third step will be identifying the product features its mean manufacturer should understand what are the features will be add to the product for the purpose of ensure the quality of the product

Step four

Unique selling Plans

Then the forth step will be identify the unique selling plan for the product then only they can attract for demand their product

Step five

Know your opponents

The marketer should understand who are the competitors for their product then only they can finalize the price the place and promotion against the competitors product also marketers can highlight the product benefit against their competitors

Step six

Never compromise on quality.

Marketers should always maintain the standard of the product because customer have perception if the product price is high the standard also high

Task 1.8

Plan the product, price, place and promotions decisions for two different customer segments of your product / service

Answer

For my product I have a plan to segment based on age wise. Those are coffee and chocolate chips ice cream for kids and teenagers other one is coffee and chocolate chips ice cream for elders. The reason is most of the ice cream target kids and teenagers that’s why we are targeting elders also.

Marketing mix

Ice cream for kids and teenagers

Ice cream for elders

Product

This product normally make for kids and teenagers that’s why we use usual ingredients

This product specially make elders that’s why we add low fat and sugar free

Promotion

We’ll plan to give advertise by cricket players because teenager like cricket players.

We’ll plan to add some toys with product this promotion target the kids and

We’ll plan to give information{goodness about product} by advertisement

We’ll give sample product to them and we’ll plan to make public relation like make some events and issue company magazine and annual reposts

Price

We make price very careful because this our introduction life and we analysis our product cost and competitors price

1l ice cream is 300/=

In this product also we care this thing but this product little bit expensive then that product because we add some special thing and we spend more money for promotion

1l ice cream is 350/=

Place

Usually we distribute our product supermarkets and retail shops but this product we’ll plan to distribute schools and colleges canteens also.

This product we use our usual distribute place supermarkets and retail shops.

Task 1.9

illustrate the differences in B2B marketing compared to B2C.what factors would you be able to adopt, and explain why it is possible to adopt?

Answers

B2B (Business to business) Marketing

. When you are working on selling to another business rather than an end user or consumer, you are engaged in B2B marketing. This called b2b marketing this product distribute to supermarkets and retail shops this is our basic b2b process and this process make to get benefits. Those are speeding up our product development actives, understanding our market better than our competitors, improving the speed of communication. These are some benefits of b2b marketing and this market very small and limited size.

B2C (Business to customer) Marketing

Basically B2C marketing is business to final consumer. It distribute like retail shops and supermarkets normally b2c market sales process small process because it final consume methods. Marketing the product in this market has to be intense because the final consumers consist of this market. B2C markets backgrounds are usually large wide markets.

Factors and Difference of B2B and B2C markets

Factors of B2B and B2C

Business to Business

Business to customer

Purchasing Process

In B2B purchasing process are very long time process like one month because purchasing quantity high that’s why we spend more time

But B2C short purchasing process like minutes because basically final consume and

Quantity also low

.

Sales Process

B2B sales require consultative selling based on understanding clients wants and needs

basically convincing the consumer because Sales are direct to the consumer

Cost of a Sale

B2B basically cost of sales are high usually cost starting from few thousand dollars to tens of millions of dollars.

B2C basically cost of sales are low. cost starting from a dollar to a few thousand dollars, except for cars and homes.

Purchase Decision

B2B have sales need. But purchase decision properly making by buyer

B2C purchase decision basically pedant on customers need and want.

Lifetime Customer Value

The lifetime value of a B2B customer is much higher due because cost of sales and the expectation of repeat sales to the same customer.

The lifetime value of a B2C customer is lower than B2B because individual sales are lower cost and repeat sales are generally fewer.

Task 1.10

Assuming that there is a possibility that this product can be exported to a country of your choice, show what changes you would make to the domestic marketing mix? Justify why do you need to bring such changes?

Answer

International marketing

International marketing can be defined as the application of marketing strategies, planning and events to external or foreign markets. International marketing is of consequence to firms which function in countries and territories other than their home country, or the country in which they are registered in and have their head office. The factors influencing international marketing are culture, political and legal factors, a country's level of economic development, and the mode of involvement in foreign markets. The reasons why a firm would engage in international markets are numerous, including the maturity within domestic markets or increasing general market share, sales or revenue.

Changes of domestic marketing mix

Product – if we plan to export our product we have to change the ingredients of our product which can be that particular country peoples’ favorites. We have to change the packaging style of us when we export our product to that particular country for an example we can change the language and the colour.

Price – first we consider our product cost and export cost and that particular country taxes then we should consider about the particular country peoples’ purchasing power and at the same time we should also want to consider about our other competitors’ price level of that particular country.

Promotion- To promote our product on that particular country we can use a great popular persons (like film stars) of that particular country. And another main thing is we try to make a good relationship with that particular country people.

Place – if we plan to export to other country. We should research that place because we need to know we can achieve our aims. This ice cream is coffee flavor that’ why we have possibility to export Euro countries because Europeans are like coffee flavor very much and midriff countries also have possible climate to our product in future we plan to export this countries.

Conclusion

From the above information’s provided it basically describes the product and all other aspects related to the marketing strategy, the marketing mix and etc.

Cargills’ coffee and chocolate chips ice cream which has a high comparative advantage when compared to the competitors and all the other marketing strategies, marketing mix and other marketing analysis. By introducing the product to the Sri Lankan market could obtain many advantages such as gain market share, profit, more loyal customer, and etc.