Your parents own a Dairy Farm in your Village near Kasur (53 KM). Your father has a desire to make the fresh, pure Buffalo milk to the consumers directly so that the negativities associated with the middle men (Wholesale buyers, Shopkeepers and delivery men) may be avoided. You have been made responsible by your parents to develop a system of delivery of the fresh milk at the doorsteps of consumers. Some factors to be considered are given below: • There is no Brand Name of the Milk as yet. • Cattle used for milking is fed on pure, organic feed. No Chemicals, Hormones or artificial feed is used. • Total production of the Farm is 1000 Liters • Nestle is paying PRs 45/- per Liters to the farmers and your parents have priced their raw Milk at PRs 50/- per Liters • Your estimate is that the milk will cost you at PRs 70/- per Liters o Cost of Bottle = PRs 7/- o Brand Name and instruction stickers PRs 3/- per one Liters bottle o Transportation PRs 3/ Liters o Chilling/refrigeration Cost PRs 1/ Liters o Labor to handle the activity PRs 3/ Liters o Transportation cost + incentive for home delivery = PRs 3/ Liter • 10% for Administrative Expenses and another 10% has been fixed for Advertisement and 10% for Distribution Expenses ( Total 30%) • Price of home delivered milk by other vendors (Gawalas and Packed Milk) is PRs 80/- to 120/ Liter. • Your Slogan is “ No addition, No deletion” (nothing is added and nothing is extracted from the milk) • Cooling chain has been established by you, i.e. the fresh Milk is put in chillers, then bottled, placed in refrigerated room and then refrigerated Van to shift to Lahore. Either the bottled Milk is immediately delivered or kept in refrigerated store. • Population of all societies in the vicinity of 2 km around is 1,000,000 (where you will operate). Define the grounds on which you will segment the market. Calculate the Target Market from the population size given above. How you will differentiate your product from the offering of competitors? What impact your differentiation policy will have on the Positioning of the product for the segment you have targeted? Which pricing policy you will adopt; Cost Based or Competitor Based? Defend your decision with logic How you will promote your product in your targeted market ? what BTL activity you will adopt? Consider your promotional budget available? How you will distribute the product, considering the mode and the budget available
Your parents own a Dairy Farm in your Village near Kasur (53 KM). Your father has a desire to make the fresh, pure Buffalo milk to the consumers directly so that the negativities associated with the middle men (Wholesale buyers, Shopkeepers and delivery men) may be avoided.
You have been made responsible by your parents to develop a system of delivery of the fresh milk at the doorsteps of consumers. Some factors to be considered are given below:
• There is no Brand Name of the Milk as yet.
• Cattle used for milking is fed on pure, organic feed. No Chemicals, Hormones or artificial feed is used.
• Total production of the Farm is 1000 Liters
• Nestle is paying PRs 45/- per Liters to the farmers and your parents have priced their raw Milk at PRs 50/- per Liters
• Your estimate is that the milk will cost you at PRs 70/- per Liters
o Cost of Bottle = PRs 7/-
o Brand Name and instruction stickers PRs 3/- per one Liters bottle
o Transportation PRs 3/ Liters
o Chilling/refrigeration Cost PRs 1/ Liters
o Labor to handle the activity PRs 3/ Liters
o Transportation cost + incentive for home delivery = PRs 3/ Liter
• 10% for Administrative Expenses and another 10% has been fixed for Advertisement and 10% for Distribution Expenses ( Total 30%)
• Price of home delivered milk by other vendors (Gawalas and Packed Milk) is PRs 80/- to 120/ Liter.
• Your Slogan is “ No addition, No deletion” (nothing is added and nothing is extracted from the milk)
• Cooling chain has been established by you, i.e. the fresh Milk is put in chillers, then bottled, placed in refrigerated room and then refrigerated Van to shift to Lahore. Either the bottled Milk is immediately delivered or kept in refrigerated store.
• Population of all societies in the vicinity of 2 km around is 1,000,000 (where you will operate).
Define the grounds on which you will segment the market. Calculate the Target Market from the population size given above.
How you will differentiate your product from the offering of competitors? What impact your differentiation policy will have on the Positioning of the product for the segment you have targeted?
Which pricing policy you will adopt; Cost Based or Competitor Based? Defend your decision with logic
How you will promote your product in your targeted market ? what BTL activity you will adopt? Consider your promotional budget available?
How you will distribute the product, considering the mode and the budget available
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