IMC Plan For Milk Management Essay
This project is about the IMC used by the Milk company. It includes the all the promotional tools used by the company for marketing communication. In this we are using different sales and promotion techniques for the sale of our company milk and building a strong image of our company product in the minds of our customers. Special kinds of price discounts , samples are given to the customers and traders for the strong positioning of our product in the market. The name of milk product is the pure milk, and the tagline of our milk product is ‘the real milk of India.”
The main objective of our company is to provide better quality to our customers as compared to our competitors and building a good image of our product in the minds of the customers.
By providing a better quantity to our customers our company will generate a revenues, which our company would further invest for increasing our product line. In this we it is discussed that what are the different kinds of four Ps of our company . What is the Price of our milk , What are the different kinds of promotional tools used by our company for the sale of our product . Different kinds of strategy are used by our company for increasing revenues from our milk product. At the end estimation of budget is done for knowing the expected expense done by the company for our milk product.
INTRODUCTION TO MARKETING
UNDERSTANDING MARKETING- Before we begin discussing marketing communication, We must take a moment to understand its higher order discipline ,viz, marketing. Marketing is a composite of many activities related to customers need fulfillment and satisfaction. Marketing includes many tasks right from identifying consumers needs and wants to fulfilling them.
DEFINITION OF MARKETING- The American Marketing Association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational objectives.
For marketing to be effective ,it requires successful coordination of all these activities at different levels in the organization.
THE MARKETING MIX – Various maketing activities can be classified into four general categories,viz,Product, Price, Place( distribution ) and promotion, which are populary known as the 4Ps of marketing or marketing mix.
PRODUCT- This includes all the activities related to the conception and planning of actual product that fulfills consumers needs and wants, i.e, decisions regarding product quality , designs, features , sizes, varieties, brand name, warranty, gurantee and other services.
In this project the product is milk. The name of our company is the PURE MILK .Milk is provided in different packages of different sizes i.e,1 kg and half Kg packets. Pice of is 28 Rs and Half Kg product is Rs14.
PRICE- This area deals with activities related to setting the price for the product. Decisions regarding retail and wholesale prices, margins of channel members, discounts and allowances, credit terms, payment period , etc. are the part of pricing function of marketing mix. The 1 kg of milk Packet is of Rs. 28 and Half Kg is of Rs 14.
PLACE- Placement or distribution refers to all activities involved in getting the product to the final consumers. Decisions under this “P” relates to the distribution channels, market coverage, locations , inventory, transportation, etc. The main target market of our milk product is the PUNJAB STATE.
As the people of Punjab are very health conscious and believe in better quality , So, our companies main target market is the population of Punjab.
Our company would sell our milk product to all the retail outlets, Sweet shops, Dairy shops, in all over the Punjab.
PROMOTION- Promotion refers to all the activities concerned with informing consumers about an organizations offering , persuading them to buy it, and reminding them it from time to time. Activities like advertising, sales promotion, directing, direct marketing, public relations, personal selling and other conventional media to comprise the “P” of operations. In promotion of our milk product we will use different kinds of promotional activities like advertising, direct marketing to the consumers and retail outlets.
It involves all the activities concerned with effectively communicating
Product information to select target audiences. A target audience is a group of consumers to whom marketing communication messages is directed.
The prime purpose of communication is congnitive, affective or behavioural response, whatever that desired response may be. In other words, the communicator might want to imprint something in consumers mind(cognitive response), change in attitude(affective response) or get the consumer to act (behavioral response).
ADVERTISEMENT OF MILK COMPANY (PURE MILK) – The word advertising is derived from its Latin root ‘ad verter”
Which means ‘to turn towards” or “to attract attention to”.
DEFINITION OF ADVERTISEMENT- Advertisement is the any paid form of non- personal presentation and promotion of ideas or products by an identified sponser.
The main objective of advertisement can be categorized based on whether their goal is to-
In our company of milk product , we can use the Brand Building advertising that focus on creating product awareness and brand building image.It is strategic and hence relatively long term in nature. We use the tagline “pure milk”, “the real milk of India”.
Retail advertisement can also be used by the retailers on the local scale.It is aimed at building store traffic, creating a distinctive image for the store and more often than not, at triggers sales in short run. Retail advertisement is more informational, giving details about the outlets and its offerings.
E.G— The retail outlets where we sell our milk would put down small notice on their blackboards about our product i.e , it is available there , its prices, it will help in attracting more and more customers.
DIRECT MARKETING- We will sell our milk also through direct marketing. Direct marketing is a interactive system of marketing which use one or more advertisement media to effect a measurable response or transaction at any location.
The advantage of direct marketing is that in results in quicker sales, better targeting and relationship building and less competition and from this we will come ,more close to our customers. In this case we will come more close to our customers and will get the perception of the customers towards our product.
TELEVISIONS- Our company will make a advertisement of our company milk product and telecast it on the T.V. Special kind of creative advertisement is made by the company for creating interest of the customers towards our milk product. The main aim of our television advertisement to aware people about our milk product.
INTERNET—As we know in today scenario, Internet is having a special place in the minds of the people. Our company Will also make Our website from which the interested people will get the important information about our product and about the product benefits and quality.
The main benefit of Internet communication is that it is directed directly towards the target market . The customers who are interested will easily go through our website and get knowledge about our product. It is totally personalized and up to date mechanism for attracting customers towards our company. Through it customers will also give their experiences and suggestions for our milk product.
DIFFERENT KINDS OF SALES AND PROMOTIONS USED BY THE COMPANY
DEFINITION OF SALES AND PROMOTION— ‘Sales promotion consist of a diverse collection of incentives tools, mostly short term , designed to stimulate quicker and greater purchase of a particular product or services by the consumers or the trade.”
Types of sales promotion used by our company- Our company will used different type of sales promotion activities for increasing sales of our product and awaring the customers towards our project.Consumer promotions are those that are directed to the consumers. The objective of consumer promotion is to offer the consumers some added benefit to entice him to buy the product.Ths is normally done in addition to the advertisement. Whereas advertising has a long run effect on the purhase behaviour , connumers promotion have more of a short term effect.
SAMPLING- This form of promotion ifs found to be especially useful when one is introducing a product for the first time. Our company will also gives sample to the target customers for checking out their reactions towards our product The samples are either distributed at the retail outlets and residences of the final customers.Our company also request the consumers to fill up a questionnaire after the sample is used and thus are able to get feedback about our product that whether the customers like it or not. But the sampling is however one of the most expensive method of consumer promotion and there is no gurantee that the customers will actually go and buy the sale pack of our product.
PRICE OFF– This is essentially offers the consumers the product at less than the marked maximum retail price. The purpose of this is to induce the consumer to try our milk product immediately.
QUANTITY DEALS- In the quantity deals , our company may provide more quantity in a same price for attracting the customers towards our product. Like our company would increase the quantity at the underlying price of our product. This will helps us in attracting more and more customers towards our milk product.
DISCOUNTS- Our company will give discounts to our customers. Like if The customers buy four -five liter milk or more than it or milk in a bulk , we will give them discounts.
OUT PRODUCED GIFTS- In this case the gift item is attached to the product from outside. This will attract customers towards our product.
Like we will give ONE PLASTIC GLASS free with every 1litre milk packet for attracting customers or increasing our sales.
CONSUMERS CONTEST- These are run to create an excitement amongst the target segment. Contest are normally advertised extensively and test more often than not the knowledge of the consumer on the product or some other skills.
We will involve the completion of a sentence , which may say that –
“I LIKE A PURE MILK BECAUSE OF ——————-“.
Prizes for this contest would be very excited for creating interest of the consumers towards it. Different cash prizes, travel allowances will be given to the winners.
TRADE PROMOTIONS- Trade promotions are those that are run to elict a better and quicker response from the trade. These can be done when introducing a new product to ensure enhanced stock preceeding a good season , or block a competitor. Trade promotions are normally part of of push strategy , the assumptions here are being that if the trader has a excess stocks bought trade scheme he will be motivated to push the product in order to recover his investment as soon as possible .
There are several tools for trade promotions
DEALERS GIFTS- For the sake of building a strong image in the minds of the dealers our company will also provide different kinds of dealers gifts and rewards so that they feel motivated and do more hard work for increasing sale of our milk product . If we provide gifts and rewards to our dealers they feel that our company is taking care of them and they are having a great position in our company.
Different kinds of travel allowances , gifts, rewards are provided by our company. Special kinds of refrigerator are to be provided by the company for preservation of milk .On the special events like on new year, Diwali, gifts are given to the traders for getting them loyal to our product.
DEALER CONTEST- Dealer contest are organized by our company for changing our traders as a loyal traders of the company and motivating them. Special kinds of rewards , gifts are given by the company for the winners.
POINT OF SALE MATERIALS- Our company should also provide point of sale material to our dealers and traders. Special kinds of refrigerators, boxes are provided by our company for the better preservation of our milk product in the retail stores, dairy shops and sweet shops.
SHOP BOARD PAINTINGS- Special kinds of hoardings, sign boards are fixed on outside and inside the shops, retail stores, dairy shops, sweet shops for attracting more and more customers and providing information to the customers that the product is provided by this particular shop.
DEALERS DISCOUNTS —For making our traders more loyal to our company special discounts are arranged by our company. The traders who will purchase our milk product in the bulk or in a continous manner , special discounts are provided by the company to them by the company.
DEALERS MEET- Special meetings are arranged by the company for doing meeting with the dealers, traders as they are more closed to the customers and they are having more information about the need, wants of the customers. The meetings are organized after every one and two months for meeting more information about our product and customer perception about our product.
INTRODUCING NEW TASTE OF MILK
PUREMILK(“THE REAL MILK OFINDIA”)
MADE IN INDIA
Manufactured BY- Pure Dairy
THE IMC PLANNING PROCESS
Marketing communication is one of the four tools of marketing mix. Hence, it is based on the strategic laid down in the marketing plan, which in turn is derived from overall business plan. Strategic planning is the process of devising a plan of action for meeting an organization goals with its limited resources and in the wake of varying market conditions. Strategy is allowed an organization to focus on limited sources on the best available opportunities, thereby achieving sales, profits and competitive advantage growth and a sustainable competitive advantage.
There are three primary components of a strategic plan-
OBJECTIVES- What a company wants to achieve. Objective dictate the course of action to be taken. E.G – The main objective of our company is to provide better services to the customers. Our main target market is the retails shops, sweetshops, and dairy shops are there in the Punjab.
STRATEGY—A long term plan of action designed to achieve the objectives. The strategy of our company is to expand the market in rural villages and also increase the customers.
TACTICS- Immediate actions with resources at hand, short-term isolated events to take advantage of opportunities at hand. E.G— Company will reduce its prices as compared to others competitors. Like the selling price of 1 Kg Milk Product is Rs 24 and Half Kg milk product is Rs. 12. The current price of milk of our competitors are 1 Kg is of Rs 28 and half Kg packet is Rs 14. Our company will also provide discounts to the retailers ,wholesalers if they purchase our product continuously or in the bulk.
THE MARKETING PLAN
The IMC Planning process begins with the review of marketing plan.
A marketing plan is a written document that details the marketing objectives, strategies and tactics foe an organization, product or brand, and guides the marketing efforts. It is based on an in depth understanding of the firms internal and external environment- the industry, the competition, the product current positioning , its customers, etc.
THE IMC PLAN- Following are the steps involved in the IMC planning process.
SUITATIONAL ANAYSIS- Like the marketing plan , the promotional plan also begins with an analysis of factors that are relevant to
- PAST PROMOTIONAL SITUATION- Review of campaign including their objectives , audiences, strategies, tools, media, and budgets.
- PRODUCT SITUATION- Our company will analyse that what are products which are present in our product category. Assessment of product benefits, quality, packaging, price, image, availability, features and unique selling points.
Like our product is the milk our company is providing better quality milk to our customers as compared to our competitors.
Price of product is that 1litre milk packet is of Rs 28 and Half Kg is of Rs 14.
Avalibility- Our milk product is available at all the sweet shops, dairy shops and all the retail stores, which are having conditions for protection of milk.
IMAGE- Our company have to made a unique image in the minds of our customers. So for this we have to chose features of our product so that our customers would easily remember our product.
The mane of our milk product is – “PURE MILK”
AND THE TAGLINE OF OUR PRODUCT IS “THE REAL MILK OF INDIA”
AUDIENCE SITUATION- An analysis of audience of promotion – buyers, influncers, decisions makers their demographic profile and psycographic profiles, behavioural patterns and life styles, factors influencing their products purchase decisions , buying patterns.
COMPETITIVE SITUATION- Promotional strategies adopted by direct and indirect competitiors. In our product our main competitors are the other milk companies like Verka, Amul. Through tjis we would analyse that what is the position of our competitors in the market, what are their strengths, weakness, their product, price etc.
Regulatory situation- Regulatory authorities governing the product category and media , and rules and regulations of the government which our company has to follow.
Like our company has to see that what are the factors which we have to follow for sale of our milk product in the market. Whether we have the get license from the government and have to registered our company to them.
Following are the some common area of analysis.
A well-known practice for analyzing and summarizing the suitation is called SWOT analysis.
Demand profile – Absolutely optimistic demand
Margins- Quite reasonable, even or packed liquid milk.
Flexibilty of Product mix- Tremendous with balancing equipments.
Availability of raw material- Abundant more than 80% of the milk products are flowing from the unorganized sector.which requires proper channelisation.
Technical margins- Professionally trained -technical human resource manpower is built in our company.
PERISHABILITY- The main weakness of our milk product is its persihability. Special Conditions are required so that our milk cannot get spoiled. Pasteurization has overcome this weakness partially. Surely many new process will follow to improve milk quality and for extending its shelf life.
LACK OF CONTROL OVER YIELD- Theortically, there is a little control over the milk yield. However , increased awareness of developments like embryo transplant, artifical insemination and properly managed animal husbandry practices coupled with the higher income to rural milk producers should automatically lead to improve in milk yield.
LOGISTICS OF PROCUREMENTS- Because of bad roads and inadequate transportation facility make milk procurement problematic. But overall economic improvement in India, will lead to the improvement in these logistic problems.
PROBLEMATIC DISTRIBUTIONS- All is not well with the distribution.
There is a need of emergence of a cold chain linking the producer to refrigerator at the consumers home.
COMPETITION- Now a days competition is very hard in every field. Our milk company may also face competition because of new entrants in the
market.Because of huge competition the market is large is enough for us to carve out their niche market.We will overcome our competitors if we provide better services to our customer than our competitors.
OPPTURNITIES FOR OUR COMPANY
Failures is never ending final and success never ending
VALUE ADDITION- We will add value to our milk products so that customers would buy product and will attract towards our product. Our company will add value added products like shikhand,ice-cream, paneer, khoa, flavoured milk, dairy sweets,etc, this will lead to a greater presence and flexibility in the market place along with oppturnities in the field of brand building.
Addition of cultural products like yoghurt and cheese tends to furthet strength both in term of utisation of resouces and presence in the market place.
A lateral view opens up oppturnities in milk proteins through casein, caseinates and other dietary products, further opening up .
Export Oppturnities—If our product would get position in the market we will expand our market in the foreign countries also. Export oppturnities would be seen for increasing our customers.Our company would generate export potentials like various companies i.s- Amul is expoting their products in foreign countries like Bangladesh, Sri Lanka.
Yet another aspect can be addition of infants foods,geriatric fods and nutritional
Milk VENDORS- Today the milk vendors in the unorganized sector are occupying the pride , the place in the industry . Organised discrimination of information about the harm that they are doing to producers and consumers should see steady decline in their importance.
Delicensing in the Indian Dairy Industry has been attracting a large number of entrepreneurs . But the success of them depends on the factor such as efficient economic facilities and innovation in the market place.
DETERMINE THE PROBLEM OR OPPTURNITIES- The suitation analysis done in step 1 helps us to identify problems or oppturnities concerning communications. IMC plans can solve problems like awareness or knowledge, negative attitude, misconception about our product .I n this case we have to sell our milk product to the customers or have to aware the customers towards our product.
DETERMINE COMMUNICATION OBJECTIVES- Communication objectives flow marketing objectives. Our company will use different communication media for increasing the awareness of our customers towards our product. Like we can use T.V, radio, print media, hoardings, bill board to aware customers towards our product.
The main objective of our different kind of communication media is same-
- To create awareness of our milk product
- To increase sale of ur milk product
- To build a good image of our product in minds of the customers.
- To provide better qualities to our customers.
DETERMINE THE BUDGET – After setting the communication objectives, our company has to estimate how much we are willing to spend on the promotional activities. The company has to consider various issues like how much the programme will it cost, how much it can afford how much competitors are spending.
Our company can make the budget by analyzing the sales expense or estimating sales in the one territory.
The Steps involved in the estimating the budget is as follows.
PRODUCT TARGET-The first step in the analysing the budget is to analsye the target market that where we have to sell our product and at which region.
Like our company is targeting the State Punjab .
Our main target market is the sweet shops, dairy milk shops, retailers of the punjab and population of the Punjab. We have to sell our milk product there so that it would reach to all our customers. Special trade discounts, special offering are provided by our company to our traders, retailers so that feel motivated and helps us in creating awarness our product towards our product.
Like special kinds of refigerators and other rewards are given by our company to the retailers, dairy milk shops and sweet shops for preserving our milk .
SALES BUDGET OF OUR PRODUCT
For getting information about our sale expenese, we estimate the expense occur by our company for selling it in the one small town , Dasuya.
For selling our product in the Dasuya city we recruit five sales persons.
There name are as follows-
- Mr. Sohan singh
- 2Mr. Mandeep Singh
- Mr. Akash Kumar
- Mr. Ram Kapoor
- Mr . Yashdeed
We are sending our five people in different regions of Dasuya City.Like one in North Zone, One in south zone , One in East Zone, one in west zone. And one in central zone.
The main benefit of sales target is –
- Inreasing market coverage because sales persons are more close to their customers.They know where they have to go , who are their customers, how they have to communicate with their customers.
- It also controls selling expense and time because sales persons have to know where they have to go and at what time. Wstage of time and mone should be eliminated by this sales territory medium.
- It will helps in enabling better evaluation of sales force performance.
- It will customer relationships. Because customers feels that they are more close t company and company is providing better services to them.
- It helps in increasing sales and increasing profits and revenues of the company.
MANAGEMENT OF TERRITORIAL COVERAGE
In the travel plan of our company customers we will do sheduling of our sales persons in a straight line manner, because through it all the sales persons start their daily schedule from the headoffice from their they get the information about their daily schedule and went to their assigned places.
TIME MANAGEMENT TOOLS- The timing of our sales persons starts from the morning at 9:00 A. M. In the morning they have to come to the office for betting their daily schedule . At 10: 00 A.M they have to start their daily schedule and had to go their assigned places. In the evening at 5:00 P.M they have to get back in the office and had to report the headoffice about their daily schedule , how was their day and how was their experience of the whole day. At 2:00 clock, they are having their lunch for one hour.
ESTIMATION OF THE BUDGET ON THE BASIS OF EXPENSE DONE ON ONE TERRITORY
Salary of one sales persons in 1 month- Rs.15000
Salary of 5 sales persons- 150000 into 5= Rs 75000
Telephones charges- 1000into 5= Rs 5000
Vehicles Charges – 1000 into5 Rs 5000
Daily meals charges—-1000 into5= Rs 5000
Advertisement expense on T.V = Rs 90,000
Expense on print media and other Rs. 3,00,000
Medias like radio, internet=
Raw materials Expenses = Rs. 5,00,00
Other Miscellaneous expenses= Rs .15,00,000
Total expense = Rs. 24,95,000
IMPEMENTATION OF THE PLAN- After making all this IMC plan we will Implement our planning for getting results and introducing our product in the market. Different kinds of communication tools are used by our company , for getting revenues and building a strong image of our product in the market.
MONITOR/EVALUTION OF PERFORMANCE-
After implementing, the whole IMC plan, we will evaluate our company performance to measure the expected results with the actual result and find whether our company IMC plan was able to build a strong image of our product. Different kinds of surveys, are conducted by our expertise to check the process of our IMC and monitoring the impact of IMC on the market and consumers mind.
From all the above information it is cleared that IMC is a very important aspect in introducing our product in the market and getting a strong position for our product. The tools of IMC like advertisements, direct marketing are helpful for our company for establishing a strong position in the minds of the customers and IMC provide assistance for the company for achieving their goals and objectives. These are the ways for fulfilling our objectives and provides us a path for fulfilling our objectives. By choosing different types of tools we convince our customers and attract our consumers towards our product a, and as a result of which we generate lots of revenues.
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BOOEK REFERRED- Sales And Promotion