Marketing plan for New Zealand Dairy Food (NZDF) launch of a squeezable yoghurt product.

• Geographic distribution of yoghurt has been divided in to three parts, Auckland, Lower North Island and South Island. The $ sales of yoghurt in these three location is keeping growing, the detail information is showing in following table:

Table 4 $ sales of Market Location 2001 - 2003

        (AC Nielsen, 2003)

• From the table above, the $ sales of all of the location is growing stable, the reason for it is the stable growing of overall population in New Zealand (FMCG, 2004).

1. Customers

• The main customers of yoghurt products are people who buying healthy food, snacks. Healthy food buyers include people who care about health for themselves, householders who buying healthy food for their children. Those people care about the healthy and nutrition aspects of yoghurt. Snacks food buyers are those people who eating yoghurt for dessert or just for enjoying. Those people consider taste to be the most important aspect.
• Customers could make their buying decisions by following ways:

• Health aspects. Consumer health-consciousness is fuelling growth.
• Price of the yoghurt products is also affecting customers’ decision of buying yoghurt.
• Taste and authenticity. Consumers are increasingly looking for new flavours and texture experiences.
• Consumer awareness of the culinary potential of yoghurt is increasing. Many cafes now using yoghurt instead of cream on the menu and consumers are following this lead.
• Convenience is also an important aspect that customers concerned with when they making their buying decisions. Drinking yoghurt and spoonless is becoming favoured.  
  (Grocers review, 2004)

• There is no specific information can be found about customers’ frequency of purchasing yoghurt. However, FMCG shows that most of householders shop for snacks 25 times annually, which means once every two weeks (FMCG, 2004). Yoghurt and Dairy Food is belonging to snacks, so that the customers’ frequency of purchase should also be once every two weeks.
• In 2002, yoghurt brands - Fresh’n Fruity and Meadow Fresh, has been voted the AC Nielsen New Zealand 2002 Top 25 Mega brands (AC Nielsen Scan track, 2002). Recently, Fresh’n Fruity diet yoghurt has been voted the most preferred yoghurt by Foodtown and Woolworth’s shoppers in the Foodtown Magazine People’s Choice Awards (Grocers review, 2004). Those awards about yoghurt show a high standard of customer loyalty and satisfaction especially shows the huge loyalty and satisfaction to Fresh’n Fruity products.
• The use of various customers. There are many people eating yoghurt for diet and healthy purpose. Most of the customers also eating yoghurt for enjoying the taste, such as kids, householders. Others may eat yoghurt breakfast or as dessert after dinner or lunch.

2. Segments

• According to the differentiation of customers needs about yoghurt products, the customers can be derived to four segments: kids, people on diet and others.
• The following discussion define how different segmentations be derived, their different needs according to yoghurt products.

• Kids are considered the biggest segmentation in yoghurt industry. Their needs according to yoghurts are: taste, nutrients, healthy and good packaging (need to fit in their lunch box). Standard yoghurt and dairy food could fit their needs, because the taste it is good. In addition, all yoghurt contains vitamin A, large amounts of vitamin B and vitamin C. It also provide huge amount of calcium, yoghurt is a valuable source of other minerals such as iron, phosphorous, potassium and sodium (Piko whole foods, 2004). Therefore their need of nutrients and healthy has been met. Moreover, the packaging of yoghurt has already been designed to fit in to kids’ lunch box.
• People on diet are also a big segmentation for yoghurt products. They need yoghurt products that contain low calories, nutrients, good taste and convenient package. Light and diet yoghurt fit their ‘low calories’ and good taste need. In addition, according to above discussion, light and diet yoghurt also copy their needs of nutrients.
• The last segmentation of yoghurt is “others”. Their needs of yoghurt are also good taste, nutrition, and healthy. Therefore, all of the yoghurt products may meet their requirements.

3. Analysis of 4ps of the Industry

1. Product

• A large rang of products is available with differing categories, flavours, size and package in the yoghurt and dairy food market. The main categories of in the yoghurt market before are standard yoghurt, dairy food and diet yoghurt. The main package sizes are 1kg pack, 6 x 125g Multi-Pack, and single pack. Flavours of The yoghurt market are various, however the main flavours are: berries, apricot, mango and so on (Personal observation). (See detail information in Appendix 1)
• There is also a big rang number of brands on the market, the product differentiation between each brand are little. However, there is a difference between yoghurt and dairy food, dairy food does not contain live bacteria, and is usually not fermented, therefore not acidic (Yoplait, 2004). There is also a little difference between standard yoghurt and diet yoghurt that is diet yoghurt has less fat than standard yoghurt. There's also contains no added sugar diet yoghurt.
• Branding in yoghurt market yoghurt is important. The best brand in yoghurt market is Fresh n’ fruity, it also has the largest market share, which means highest level of customers loyalty and satisfaction (AC Nielsen Digest, 2003).
• The main package of yoghurt products as mentioned before is 1kg pack, 6 x 125g Multi-Pack, and single pack. There are also other packages such as 510g packs, 1lite pack. There also a new packaging innovated by Meadow Fresh - 150g Spoon Pack Single (Meadow Fresh, 2004).
• In the yoghurt market, different kinds of yoghurt are benefiting different customers’ requirements. Standard yoghurt and dairy food have the feature of best tastes of overall yoghurt products and contains lots of nutrition. Customers who enjoy good taste and health food will get the benefit from standard yoghurt and dairy food. Light and diet yoghurt is the kind of yoghurt that also contains lots of nutrition but less fat and no added sugar, therefore healthier than standard yoghurt and dairy food. Therefore, people on diet or people who cannot eat food with sugar such as people who has diabetes mellitus. All of the yoghurt products also contain live Acidophilus and Bifidus cultures, which are considered to be very good for digestive health. Thus, people who need digester will gain benefit from all yoghurt products.
• Consumers are increasingly discerning and looking for new flavour and texture experiences. A number of new products have been developed to combat "flavour fatigue". (Grocers review, 2004). In the future more flavour of yoghurt products will be developed. Moreover, the existing packaging of yoghurt products cannot meet all of consumers need. Later on, more packaging style will be developed.
• The substitutes of yoghurt products can be ice cream, cheese, and other dessert products. Instead of eat yoghurt people, may eat ice bream or cheeses or other dessert products for a good taste snack food or dessert.

1.  Pricing

• The following is the price comparison between 2001 and 2003 and the original price and selling price (price on special) in the supermarket.

• Compare the average price per pack of the yoghurt products from 2001 to 2003; it is obvious that the price is growing steadily. In 2001 the average price per pack is $1.94(AC Nielsen Digest, 2001), then $2.08 in 2002(AC Nielsen Digest, 2002), and reached to $2.08 (AC Nielsen Digest, 2003).
• From store visit, the original e price of yoghurt products is different with the selling price. Normally, the selling price is around $1 lower than the original price. A complete survey of pricing of brands is giving in appendix 2.

• The pricing strategies used by yoghurt producers are: buyer based and competitor based approaches. The brands are reducing the price of the yoghurt products regularly to attract more customers and increase customer perceptions. In addition, the competitor based approach apply when one brand is reducing price, other brands are also reducing their products’ price in order to avoid losing attractiveness in the competition. The strategy supermarket are using: reduce yoghurt products’ price and some other products’ price to attract customers to the store, when they come to the store, they are not only buy the products that on special, they will also buy the rest of other product that is not on special. They are getting less profit from those products on special but gaining more profit from the rest of products that is non-special.
• Although the yoghurts’ price is regular reduced by the supermarkets, the yoghurt average price per pack is still growing. The reasons are: the original price (non-special price) of yoghurt products are increasing; there are more new products being developing as mentioned before, and when new product are innovated, the price of it is more likely higher than the existing products.
• It is a fact that grocery or snack food products are sensitive in pricing. When the price is dropped, customers are also being attracted in to store. Yoghurt is one of the grocery or snack food products, thus, it follow the rule of high price sensitivity. When the yoghurt products’ price has been dropped more customers buy the products than before.  

1.  Distribution

• All of the New Zealand top supermarkets sell yoghurt products. This include: Foodtown, Pak n’ save, Countdown, Woolworths, New World, 3 Guys (Personal Observation).
• The yoghurt products are in an important position in the supermarkets. It is in the position that customers must go through to buy their essential food for living (See detail information in Appendix 2). The position of yoghurt products on the shelf follows the top brand is in the eye level, where they can get more sale therefore more market share, followed by less famous brands. (See detail information in Appendix 2)
• The yoghurt brand that have most facing products are fresh n’ fruity, followed by Meadow Fresh, Yoplait, SM Calci Yum and DE Winkel. More facing means more opportunities for shoppers to see and to buy, and therefore more market share can be earned. (See detail information in Appendix 2)
• Under normal circumstances, the margin for grocery products is 10%. Thus the margin of yoghurt products should also be 10%. The formula “cost price = selling price x margin” is used to measure the supermarket’s cost price. For example, if the supermarket will sell fresh n fruity single pack yoghurt at $1, then they pay $.90 to purchase.

1.  Promotion

• The main types of promotion used in yoghurt market are: TV, Magazine, Ratio, and Press (Nielsen Media Spend, 2002).
• The total expenditure in yoghurt market on media is 3,139,916. In addition, the amount spend on TV is: $2,128,311; spend on Magazine$337,078; spend on Radio6$72,633; spend on Press $1,894 (Nielsen Media Spend, 2002).    
• The competitors are spending different amount on media support, the following the media spending of different companies:

Table 5 Different companies’ media spending

(Nielsen Media Spend, 2002)

2. Company

1. Introduction of the company and its operation

New Zealand Dairy Food Ltd (NZDF) is the market leader in New Zealand in dairy food market, with a strong domestic business and a growing international division. The company contains some of the famous and successful brand that customers recognize, such as Fresh n Fruity, Swiss Maid Calci Yum, Anchor and so on.

The company always focuses on product innovation, concentrate and take care of their customer in order to win a strong market position across all of the product categories, particularly in milk products, cultured foods and specialty cheeses (NZDF, n.d.).

NZDF operates four product categories in New Zealand and an international division:

Table 6 NZDF product categories

(NZDF, n.d.)

2. Market share position and trends

The NZDF holds the largest market share (more than 50%) in yoghurt industry. AC Nielsen Market Information Digest shows that, the market share of NZDF has been increased from 2001 to 2002, but slightly declined from 2002 (58.0%) to 2003 (56.1%) (AC Nielsen Digest, 2003). However, in 2004 the NZDF has launched a new product "Yoghurt To Go" yoghurt drinks. This product may bring the company more profit in the future, but there is also a chance that the product may not be successful (NZDF, n.d.).

3. Image and consumer perceptions

In 2002, NZDF has two brands been voted to 25 top supermarket Mega Brand in New Zealand, according to a study released by AC Nielsen New Zealand. They are Anchor and Fresh n Fruity (AC Nielsen Scan track, 2002).  In 2004 the NZDF brand Fresh n Fruity has been voted the most preferred yoghurt by Foodtown and Woolworths shoppers in the Foodtown Magazine People’s Choice Awards (Grocers’ Review, 2004). All of these awards prove that NZDF is widely recognized by customers, NZDF is successfully wining good consumer perceptions.

4. Analysis of marketing mix of the company

NZDF have large rang of products; the main product is milk, cheese, yoghurt (NZDF, n.d.). It is hard to compare and analysis all of its products. Therefore, the following is the 4Ps analysis of yoghurt products only.

2. Product:

• Under the Fresh n Fruity and Swiss Maid Calci Yum brand are a range of standard, lite and deluxe yoghurts and dairy food in singles, multi-packs and large 1kg packs (NZDF, n.d.).
• The difference between standard and lite yoghurt is lite yoghurt contains less fat than standard yoghurt and there's no added sugar - the artificial sweetener 'Splender' adds just the right amount of sweetness. The different between all the yoghurt product and dairy food is dairy food does not contain live bacteria, and is usually not fermented, therefore not acidic (Yoplait, 2004).
• The branding is important to attract more customers and gain more profit. As mentioned before, fresh n fruity has been voted for most preferred yoghurt by Foodtown and Woolworth’s shoppers, which means the fresh n fruity becomes the best brand in yoghurt market (Grocers’ Review, 2004). The good reputation will attract more customers, thus, the company will gain more profit.
• Fresh n fruity and Swiss Maid Calci Yum have three main products: standard, lite yoghurt and diary food (NZDF, n.d.). The standard yoghurt and dairy food has a good taste and contains lots of nutrition, thus, it is a good taste and healthy food for people’s day-to-day life. The lite yoghurt also has good taste, contains lots of nutrition and it also has less fat and contains no sugar. It will especially benefit those people on diet and diabetic.
• Fresh’n Fruity is growing lite range. The company added to its fast-growing Lite range in 2004 with the addition of Vanilla Fruit Fare and Berry Combo size-packs, plus Fruit of the Forest 1kg (Grocers Review, 2004).
• The substitutes of Fresh’n Fruity yoghurt and Swiss Maid Calci dairy food could be fruit, cheeses, ice creams, and other dessert.

1. Pricing

• The original price of Fresh’n Fruity yoghurt and Swiss Maid Calci Yum dairy food that supermarket sell was $5.99, but the real price they sell to the customers is $3.99 (Personal observation).
• One price strategy that the company using is reduce price sometimes, to attack more customers to buy the yoghurt products. The other is reducing price of yoghurt products when the competitors are reducing their prices.
• The information in AC Nielsen Digest from 2001 to 2003 shows that the yoghurt average price per pack is still growing (AC Nielsen Digest, 2003). Therefore, the price of Fresh n Fruity and SM Calci Yum dairy food should also being growing.
• As mentioned above, because of grocery products are sensitive in pricing, yoghurt and dairy food products are sensitive in pricing. Therefore, Fresh n Fruity yoghurt and SM Calci Yum dairy food are also sensitive in pricing.

1. Distribution

• Fresh n fruity yoghurt and SM Calci Yum dairy food products are selling top supermarket in Foodtown, Pak n’ save, Countdown, New World, Woolworth and 3 Guys (Personal observation)
• Fresh n fruity products and SM Calci Yum dairy food are in the dairy food shelves. Normally there are five levels in the shelves in the supermarkets, Fresh n fruity yoghurt and SM Calci Yum dairy food positioning in eye level places, which means the third, forth and the final level (Store visit).
• In the supermarket Fresh n fruity yoghurt has the most facing products of overall yoghurt products. Normally, it has 28 6pack and 1 kg pack yoghurt facing on the shelf. Meadow Fresh and Yoplait has second most facing products (around 20 for each kind of package) (Store visit). More facing of the product means more opportunity for customers to see and buy the product, NZDF has the most facing product and holds the largest market share.

1. Promotion

• The types of promotion the company used are: TV and magazine (Nielsen Media Spend, 2002).
• In 2002 the company’s total spending on media is 2,127,200. 1,953,099 have been spent on TV and 174,101 have been spent on magazine (Nielsen Media Spend, 2002).

1. Competitors

• The total yoghurt market is worth $94 million per annum and is growing strongly with growth of 7.5%. Multi pack products and large single packs are the key pack sizes behind the growth in the key account (FMCG, 2004).
• The competitors to NZDF are Mainland Products Ltd, International Fine Food Ltd, Biofarm Products Ltd and Serra Natural Foods. However, according to the AC Nielsen market information digest, the main competitor to NZDF should be Mainland and National Foods International Fine Foods (NFIFF), because these two brands also holds big market shares. Mainland holds 21% of the market share whereas NFIFF holds 18.3%. Mainland’s market share is stable growing whereas NFIFF is stuck in the middle of the market (AC Nielsen, 2003).
• Both of the two companies’ strategy is launch new product.  Mainland launched new product-new Meadow fresh multipacks, which are a combination of classic favourites including strawberry fair, vanilla medley and creamy combo and interesting new combination, include: creamy combo featured by raspberries and cream, strawberry and cream and boysenberry and cream. Mainland has also launched a new product – 150g spoon pack. Yoplait has also launch new product called D-lite (FMCG, 2004).

2. SWOT Analysis

• Strengths:

NZDF as the market leader of New Zealand dairy food market holds the largest market share (more than50%). In yoghurt and dairy food market, NZDF owns several most famous brands, such as: Fresh n Fruity, DE Winkel and SM Calci Yum. They are all strong brands with high customer loyalty. The company also has a large range of products that covers all different flavours. In addition, new products (Passionfruit Paradise 6 pack and Mango & Passionfruit 1kg) introductions have helped boost growth (Grocers Review, 2003). The company are also spending strong media support to each of them.

• Weakness:

Although the company have launched some new taste products, it does not have any innovation on package design. The original packages are not convenient enough; therefore, the company is losing potential profit.

• Opportunities:

The increasing of New Zealand population will lead growing of overall market. In addition, health-consciousness remains a growing concern for people to decide their buying decisions. Moreover, consumers are increasingly looking for nutritious and convenient lunchbox items (Grocers Review, 2004). Yoghurt as a lunchbox and healthy food will have more potential customers.

• Threats:

The competitors are selling their products at special price more regularly. Competitors have been innovated several new product both base on flavour and package. For example, Yoplait has launched a new product called Diet lite. The feature of new Yoplait Diet lite is vibrant green pack rather than blue and white look (Grocers Review, 2004). Meadow fresh has also launched a new package of its 150g pack with spoon inside (Meadow fresh, n.d.).

3. Opportunity

NZDF should also launch a new product that has a convenient package design. The new package can be 150g or 200g squeeze pack with all sorts of fresh n fruity flavours. The squeeze pack yoghurt will break the rule of eating yoghurt with spoon, but bring customer more convenience. Squeeze pack yoghurt will allow customers bring yoghurt and eating yoghurt everywhere, touring, watching sports race and other outdoor activity without bring spoon with it Kids can put yoghurt squeeze pack in their lunch box and without put spoon with it. The busy parents will benefit from the new design too, because it is very forgettable to put spoon in the lunchbox. In addition, kids are fashion and brand conscious, they pay attention to portion size, the quality and targeting of packaging and also have considerable pester power (Grocers Review, 2004). Therefore, kids are the most likely people to try the new product and have fun with it.

If the squeezes pack getting popular, consumer who used to other package yoghurt product, such as Meadow fresh spoon pack, will switch to buy the new squeeze pack products. In addition, Fresh n fruity will have better reputation and more product awareness, therefore the company’ profit and market share will grow.

4. Objective

• Achieve total yoghurt sales revenue of $155,085,500 in 2006, with represents a 10% increase per year with in next three years from 2004.
• Achieve total yoghurt package sales of 60,068,300 packs in 2006, with a average 5% increase per year with in next three years from 2004.
• Achieve 65% market share in the total yoghurt market; with a 3% increase per year with in the next 3 years start from 2004.

5. Strategies

In order to achieve above objectives, NZDF need to focus on customer wining. By doing this, the company need to maintain the existing customers, attract new customers as well as try to attract customers that belong to competitors in the yoghurt market. In order to achieve the winning customer approach, the company has to have competitive advantage with its products. From previous analysis, the customers will favour the launch of a convenient package to the product. Therefore, launch a new convenient package will bring to the company competitive advantage. Moreover, because of the fact that kids are a large segmentation in the yoghurt market, it is profitable for company to choose kids as their target market.

According to the new product, its feature should be, low production cost, multi-flavours, light and convenience package, and interesting design.

The price of the product should be in the medium range. The product should be selling at 15% margin.

The new products should be sale to those stores where most people buy snack food form there.  

The promotion of the product should be done in the most effective way to create highest product awareness.

6. Tactics

• According to the strategies above, NZDF can launch a new package yoghurt product as 150 g Squeeze pack. In the market, there is some squeeze pack products such as Ribena. The squeeze pack will change the culture of eating yoghurt with spoon. People can eat yoghurt everywhere they want without bring spoon with it. Thus it is very convenient to the customer. The squeeze pack is a soft pack design, thus, it is easy for carry and storage.
• The squeeze pack yoghurt should be selling in supermarket, department store and specialty stores where most people buy snack food from. The product will sell to the stores in 15% margin, which is 5% higher than the rest yoghurt product within the company. In the stores the squeeze pack yoghurt should be position at dairy food product shelf, as same as the rest of the yoghurt products’ position.
• The squeeze pack yoghurt will be selling in medium range of price, which is higher than the rest of yoghurt single packs but lower than the multi packs and 1kg packs. The on-shelf price for it will be $1.50 per pack. The price in to store will be $1.25.
• The purpose of promotion is to getting most customers to know the product, especially kids – the target segment. The company should spend on media promotions: such as TV, Magazine, School Bus and Radio. Promote on TV and advertise at the kids’ program time, to attracting both kids’ attention, get noticed. This may lead the product getting popular for kids. Promote at Women’s day magazine. The spending on magazine is to attracting adults’ attention. Adults can be parents they the people who are going to buy the product for themselves and for their children. The spending on school bus is also attracting more kids’ attention. Kids may discuss the product together and become more interested to the product. The spending on radio, is to attacking both kids and adults attention to the new product, they may discuss the product and plan to buy the product.

7. Action plan

8. Budgeted contribution statement

The company assume that the cost of good sold is 30% of sales. 

9. Control

The achieving of objectives can be control by following way:

• Select the performances that need to be monitored. The performance could be: the package sales, dollar sales, kilogram sales and so on
• Compare the actual performance to the planned performance. This should be compared on monthly bases. By doing this, the company can have opportunity to control the plan better.
• Specifying acceptable deviations and identify implications of deviations. It is common that not everything is going to perform as the way it should be. The company can specify the deviation in advance justify the deviation by appropriate actions to minimise any loss.
• Make changes when needed. The company should also be aware of any changes to the market, and make decisions about changing of the plan to be more appropriate.

(Guiltinan, Paul and Madden, 1997)

References

Acnielsen, (2004, August). Key trends. FMCG, pp.66-74.

ACNielson Microscope (2004). Retrieved: Healthy food. Auckland.

ACNielson –Market information Digist (2004). Auckland.

ACNielson –Media Spend (2002). Auckland.

AC Nielsen - Scan track (2002). Auckland. 

FMCG, (2004). Category Focus. FMCG, pp.71-74.

Grocers review, (2004). What is happing. Retrieved October 10, 2004 from the World Wide Web: http://www.grocersreview.co.nz /archives/apr04_3.htm

Piko whole foods, (2004). Yoghurt. Retrieved October 20, 2004 from the World Wide Web: http://www.pikowholefoods.co.New Zealand/newsletters/yoghurt_no15.htm

Grocers review, (2004). New Yoplait diet lite. Retrieved October 13, 2004 from the World Wide Web: http://www.grocersreview.co. nz /archives/sep04_7.htm#8

Grocers review, (2004). The Healthy Lunchbox. Retrieved October 3, 2004 from the World Wide Web: http://www.grocersreview.co.nz /archives/apr04_3.htm

Grocers review, (2004). New Zealand Dairy Foods – yogurt and cottage cheese. Retrieved October 11, 2004 from the World Wide Web: http://www.grocersreview.co.nz /archives/oct03_3.htm

Guiltinan, J. P., Paul, G. W., & Madden, T. J. (1997). Marketing Management (6th ed.). New York: The McGraw-hill Companies, Inc.  

New Zealand Dairy Foods Ltd, (n.d.). Company Overview. Retrieved October 15, 2004 from the World Wide Web: http://www.nzdf.co.nz/overview.html

Store Visit: 25/10/2004, Pak n’ save

Appendix

Appendix 1 Rang of Yoghurt products

Appendix 2 store visit

Store Visit – Pak’ n Save on 20/10/04

• Positioning of yoghurt and dairy food in Pak’ n Save

                                                                                        

        

• Position and facing of each brand product on shelf

Brief

This brief is about New Zealand Dairy Food Ltd (NZDF) launch “Fresh n Fruity Squeeze Pack Yoghurt” to Grocers Review magazine.

New Zealand Dairy Food Ltd (NZDF) is the leader in yoghurt and dairy food market. The company also has the largest market share in the market. It holds brands such as: Fresh n Fruity, SM Calci Yum, and DE Winkel. They all are famous brands and the customer satisfaction to those brands is very high. However, because of launce of new taste and new package product of other competitors, the company has started to lose profit. According to this situation, the company is going to launch a new package yoghurt product – squeeze pack yoghurt.

The goal of launch the new product is to increase the company’s profit as well as market share. The objectives are: achieve total yoghurt sales revenue of $155,085,500 in 2006, with represents a 10% increase per year with in next three years from 2004. Achieve total yoghurt package sales of 60,068,300 packs in 2006, with a average 5% increase per year with in next three years from 2004. Achieve 65% market share in the total yoghurt market; with a 3% increase per year with in the next 3 years start from 2004.

The strategies the company using are: develop the new squeeze pack yoghurt and launch the product to the market; sell the product at a medium range price; increase awareness of the product by promotion; distribute the product in supermarket, department store and specialty store.

The requirements of content of the trade launch are following:

• Introduce the company’s background, emphasis the company holds the largest market share and own many successful brands
• State about the trends of the market include: expanding market size and consumer’s buying intention
• List all the new packaged products and the feature of the new products.

The budget for the work is $214,200. It should be finished by 30 March 2005.

Evaluative comparison

According to the theory of pricing with the decision-making, there are three pricing approaches: cost based, buyer based and competitor based approaches. The cost based approach is according to the retail margins, production costs. Labour cost and marketing cost. In Markstrat, it is easy to identify the product cost, retailer margins and production cost. However it is hard to identify the labour cost. In marketing plan, it is also hard to know the production cost, but the rest factors are not hard to find.

The buyer based approach is based on the customer exceptive price and brand perception. It is easy to apply this theory to Markstrat because both of these two factors are easy to be found. Whereas in marketing plan, it is easy to find the brand perception. However, it is hard to identify the customer exceptive price.

The competitor approach is according to retailer and manufacture competition. Both in Markstrat and marketing plan, this approach can be used, because the information about retailer and manufacture competition can be found.