5. SURVEY QUESTIONNAIRE
We have developed a survey questionnaire for the
screening process. The results of questionnaire have
shown highest percentage for the Mint milk, as people
believe that Mint is a best and refreshing flavor and
ingredient to add in milk. They perceive that addition of
Mint in milk will provide them a refreshing and healthy
drink. As we all know, people nowadays are very
conscious about their health and are willing to pay for
health products. People use to buy drinks that make them
refresh and provide them with good taste. People look for
different flavored drinks to refresh themselves. That’s
why our new product Mint milk is a feasible product that
will give us reasonable profits in future.
6. The graphical representation of our survey
questionnaire is as follows:
69%
31%
Do you want new milk flavors to come into market?
Yes No
11. Actual product development
• Idea generation
• The development of the new product, brand start
with the concept. The concept we introduce is
the flavored milk. A mint milk, we consider this
idea as it was not present in the market, it would
be a new experience for the people and the
company. We generated this idea in coordination
and a group discussion with the team members.
In addition with the mint milk we also considered
two more ideas as alternatives coconut milk and
date milk.
12. screening
• This step is crucial to ensure that unsuitable
ideas, for whatever reason, are rejected as
soon as possible. Ideas need to be considered
objectively, ideally by a group. In this step we
considered all the alternatives had a research
survey as the result of the survey mint milk
was considered as the best option.
13. Business analysis
• After the screening process is over we would
move to the of profit testing. In this phase we
will consider whether the product would be
profitable or not? Would it generate profit for
the company? This include marketing strategy,
highlighting the target market and full
appraisal of the cost, competition and
identification of a break-even point.
14. Product development
• After all the business analysis are made
product would be consider in the technical
and marketing development stage. In this step
actual product is being made. The idea is
given the actual product shape.
16. • Sample testing
• When the concept has been developed and tested, final decisions
need to be made to move the product to its launch into the market.
Pricing and marketing plans need to be finalized and the sales
teams and distribution briefed, so that the product and company is
ready for the final stage. Where we need to do a huge
advertisement on tele media, bill boards etc. we need to make
people aware of our product. We need to place the product heavily
in the market it available for the customers to have it easily.
• Launch
• When the concept has been developed and tested, final decisions
need to be made to move the product to its launch into the market.
Pricing and marketing plans need to be finalized and the sales
teams and distribution briefed
17. Product and service tactics
Our milk contain
• Special and unique taste as it contains mint in it
• It is specifically produce for the diet conscious people
and also healthy as well
• Taste and the quality of our product will be
consistent
• We add such ingredients which make the more
nutritious milk
19. Product branding
• market gap
• associate our product with different and
healthy products
• Advertising
• make strategies
20. Brand Extension Vs
Unique brand
• New Product:
Our Brand Moneta is the new product of Olpers. We will set
the target market and will do all the advertisement campaign
to make people aware of the product.
• Flanker Brand
Our brand Moneta is also came in the category of Flanker
brand as Olpers have the milk in the market and they are
launching the milk again with the mint flavor for the
different target market. It helps to increase the market
share of the Olpers and it will be suitable for their
product line as well.
21. Portfolio Management
• Establish & maintain a database of relevant information
on the product, the market and the competition
• Evaluate key products in terms of customer satisfaction,
competitive advantages and company expectations.
• Add value by improving features or reducing costs
• Increase market penetration by identifying new uses and
new users
• Look for gaps in the product line
22. Add Value to Existing
Product
We can add value in our product by
• By Changing the flavors
• Add ingredients which enhances the
refrigerator life of Moneta milk
• We will add those ingredients which will be
healthy for the oldies
23. Market penetration
• Through advertising properly we can achieve
high revenue by converting nonusers into
regular customer
• We will use campaigning schemes and keep
on telling about the benefits of our product so
the people attract towards our product
24. Pricing strategy
• Value based pricing
• Logic behind selection
Customer value Price Cost Product
25. Factors influencing perception of
value
• Step 1: Identify the cost of competitive product or the
process that the customer views as the best alternative
• Step 2: Identify all the factors that differentiate your
product from the competitive product or process.
• Step 3: Determine the value to the customer of these
differentiating factors. Sources of value may be
subjective (pleasure) or objective (cost, profit)
26. Incremental cost
• Incremental cost is associated with our
product Moneta as we can add more flavors in
our product later
27. Sunk Cost
• We spend on machinery, buffaloes and on
packing that cannot be reversed
28. Effect that influence buyers
willing to pay
• Price Quality Effect:
Our product gives so much quality to the
customer that they didn’t bother about the price
of our product whether it is high or low.
• Fairness Effect:
As our product is good for the health of the
people and it will make them a better and healthy
person then they will not back off from our
product as it will become one of the useful
aspects for our customers.
29. Segmentation for value
Communication and Delivery
• Value buyers
Our product lies in the value buyer as we are
focusing more in giving the quality which
people want from us and the relation between
us and customer is value base pricing.
31. Q1. Is there a response that would cost less than the
preventable sales loss?
• we would not directly respond to it if our
competitors go for some discounts etc. as we our
introducing a new flavor in the market and already
set affordable prices we would not go for reducing
the price or offering discounts at this very start as
the customer wants to taste new flavors they would
pay for it and our sales would not be affected as
such. We our having a competitive advantage of new
flavor over which would match the pricing decision
and not let us to cut our original prices.
32. Q2. If you respond is competitor
willing and able to cut price again to reestablish the
price difference?
• as the 1st price cut of the competitor did not
affected our customers. Now we can think of
giving some discounts to our customers in way
that own purchase of 250ml bottle 50ml free
pack so that to grab more customers.
33. Q3: will the multiple responses
required to match a competitor still cost less than the
avoidable sales loss?
• Ans: now stop with the price war and let your
competitor what he wants to do with his
pricing strategy and you remain with your
pricing you have set lastly.
34. Q4: Is your position in other markets threatened if a
competitor is successful in
gaining the share? Does the value of the markets at risk justify
the cost of a response?
• Ans: as we are entering with entirely different
flavor in the market we need strengthen our
position in the market and grab the market
share as much as we can. For this purpose if
we need to cut the price and respond to the
competitor we could go for it.
35.
36. Our reaction
• We think to go with attack where the
competitor is weak having justified price. We
can come up with strong new idea with
neutral price to attack the competitors and
grab more customers.
37. PRICING STRATEGY:
Our pricing strategy involves establishing cross
functional objectives and synergistic goals so that our
company can profitably produce and capture value.
Our product price is set to maximize profitability for
each unit sold or from the market overall.
PROACTIVE PRICING:
As we are not entering in the entirely new market, we
are reevaluating pricing strategy in a market where the
firm is already doing business, it is better to us to begin
from inside out, beginning with price structure and
process, then value-based marketing strategy, and
finally competitive strategy.
38.
39. THE PRICE STRUCTURE:
The price structure consist of two elements:
• Segmentation Fences
• Value Metrics
40. SEGMENTATION FENCES:
These are criteria that customer must meet to
qualify discounts e.g. age, educational status.
For our new product Moneta Mint Milk,
Segmentation fences are based on age (with
discounts for teen agers and sports persons
under eighteen and seniors).
For our product, segmentation fences work well
because our product is not worth the effort to
resell.
41. VALUE METRICS:
They are the units to which the price is applied
e.g. per hour, per visit, access, performance,
time of day and season of the year. We could
vary prices by season of the year like mint milk
would be more preferable in summers as
compared to winters so we could charge more
prices in summer as drinks are in high demand
on that season of the year.
42.
43. THE PRICING PROCESS:
Our process for setting price levels within the
structure is proactive. As our company is flexible,
adaptable and focused on continually improving
their customer service, productivity, efficiency and
workplace environments. We go for price
proactively incorporating different customer needs
while maintaining price integrity to establish value
based price integrity because customers are
different in their needs and therefore in what they
will pay for, our pricing policy must accommodate
those differences.
44. VALUE BASED MARKETING
STRATEGY:
In our strategic pricing we establish value based
marketing goals for the creation & communication of
value. Value based marketing allows customers to make
easy comparisons between competing prices.
CREATING CUSTOMERS BENEFITS:
Our company’s marketing efforts add value by creating an
internal understanding of the benefits that customers
seek and organizing the company to supply those
benefits. Our company understands the customers’ needs
well enough to make that potential a reality.
45. COMMUNICATING THE
VALUE PROPOSITION:
We efficiently communicate the value of our
product to the customer through our effective
marketing efforts because value based pricing
will fail unless customers actually perceive the
value for which the pricing process and price
structure are designed to make them pay. The
purpose of value communication is to raise
uninformed buyers’ willingness to pay to a level
that we want to achieve.
46. PROFIT-DRIVEN
COMPETITIVE POSITIONING:
We identify segments of the market that we can serve profitably and
position itself to do so. We have chosen the following method to
determine potential profitability:
NEUTRAL PRICING:
We adopt neutral pricing strategy because conditions are not sufficient
to support either a skim or penetration strategy because both of them
are extremes of pricing strategy and for our new product Moneta Mint
Milk, we cannot charge very high price as well as very low price as if
we go for very high price, people would not be willing to pay a very
high amount for just a drink. On the other hand, if we charge a very
low price then people might think that the quality of our product is
very low that’s why we have to go for neutral pricing strategy that’s a
perfect balance between skim and penetration pricing strategies.
47.
48. Introductory stage
Strategies for Introductory stage
Research and development department would be the most important factor as they would conduct a
market survey (questionnaire)
We would have a competitive advantage (different new flavors) over our previous products which
would increase its sales in market.
We would have aggressive promotion of our product
Marketing innovation through price induced sampling:
As our product is of mint milk, and would we manufactured in large quantity due to low incremental
cost incurred in the manufacturing, and its benefits or taste is obvious after just one use. It is one of
the effective ways to educate the buyers or introduce our product by sampling
Marketing innovation through distributation channels:
Co-op advertising:
We will place our stale outside the departmental store or inside the mall. We will do advertising with
them also they will place our broshers’ display in their stores and malls.
Premium shelf space:
49. Growth stage
Strategies for Growth stage
As we are getting profit so we would try to enter and target as many as consumers
we can.
• We would find different markets and increase our distribution channels, different
retailers with fewer prices.
• We would make different sizes of our mint milk 2 litl, 20 ml.
• We can place our small stalls in the schools university
pricing Differentiated product strategy:
• In this we will direct our marketing efforts towards developing unique attributes
(or images) for our product.
• In this strategy is focus Pricing the differentiated product directed industry wise.
• In this we will use the neutral pricing strategy.
50. Maturity stage
Strategies for Maturity stag
• As now we are old in the market we have to keep our place safe.
• We would do market research again to know about consumer’s perspective about our existing
mint milk flavor.
• Discounts as ( buy one 2litle pack and get one 2ml pack free)
• We can also launch our product in entirely different area with different strategy and price to
remain in market.
Pricing maturity stage .
At this stage we have sustainable share in the market. Weak Competitors' are whipped out.
• In our product (mint milk) we have used different healthy vitamin which would be
differentiating our product with the competitor’s product.. Otherwise it would also affect our
sales and our brand image
• In this we will be changing our packaging, label, and also add some new and unique
ingredients. Which we would reintroduce our product to the customers with different look
51. Decline stage
Strategies for Decline stage
• At this stage we can reduce the advertizing, promotions,
• production of our product.
• Now we will start to remove this product from the product line slowly reducing the
production.
• The other alternative is that we can search for such market which also has some
chances for our growth as in less recognized areas to completely finish the
inventory.
Alternative strategy in Decline:
• in this last stage we would we using the retrenchment strategy.
• Retrenchment
• It involves either partial or complete surrender of some market segments to
refocus resources on others where the firm is in stronger position.
• In this we would shift all recourses of mint milk –coconut milk production. In this
we only have to change our core ingredient only.
52. Segmented pricing according to
our product
• By purchase quality: (B2B)
As our company is only manufacturing the mint
milk in the production section. In this we will sell
the mint milk in the form of different batches to
the retailers or other distributers.
• Volume discounts:
• In this we would offer the retailers the discounts
if they would buy the mint milk in bulk .
