NEW PRODUCT DEVELOPMENT

Table Of Contents:

Page
S.No Particulars
No.
1 Introduction 2

2 Company profile 3

3 Company Mission &Vision 5

4 Goals &objectives 6

5 New product summary 7

6 Marketing segmentation 10

7 Target market 12

8 Positioning 12

9 Price adjustments 16

10 Place Decision 18

11 promotion 18

12 Promotion mix 20
23
13 conclusion

INTRODUCTION

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Authorization:

As a student of Marketing, this project and the formal report of this project is assigned to us by
our instructor Mr. Javaid Iqbal . This report is basically a group work shared by nine members
and the organization, which we have chosen, is
“Ice milk Milk”.

Scope of the report:

This report comprises of the basic elements of marketing that are the building blocks of any
organization. Ice milk Milk is the result of the sincere efforts, effective communication and
corporation of all the people working within its premises. This report covers the major strategies
of marketing in Ice milk Milk. All the research that is now presented in the form of an organized
report in front of you is done through research put to the organization’s marketing to get an
overview of how it functions as a whole.

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ICE MILK MILK COMPANY

(Pvt.Ltd)
COMPANY PROFILE:

Ice milk dairies limited were incorporated in Pakistan on Jan 05, 2010, as a privatecompany. It is
principally engaged in processing and sale of packaged milk
and allied dairy products
Begin a perishable product; fresh milk has virtually no shelf life without refrigeration. Pakistan
experiences long and hot summers, which greatly limits the marketing of unpacked milk; most
people cannot afford refrigerators to store milk thus necessitating its daily purchase. Because of
adulteration there is no consistency in the quality of fresh milk available to consumers. Given
these circumstances CDL has identified a demand for high quality, bacteria free milk which can
be stored a long period of time without refrigeration. CDL, therefore, proceeded to position it
self as a producer of pure, hygienically packed long life milk and hence ICE MILK was
introduced. The UHT treatment sterilizes the milk without altering its taste too much and renders
it safe for direct consumption. The biggest advantage if the packaging is that the shelf life of this
milk is prolonged to three weeks without refrigeration.

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Year Of Establishment 2010

Factory Location 60 Km, Lahore-Sargodha Road,

Choki Bhagat,Sargodha

Factory Area 14 Acres

Number Of Employees 200

Main Product Ice milk Milk

Head Office Rehman trade center college Road,

Sargodha 40100

E-Mail Address Ice milk@brain.net.pk

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COMPANY’S MISSION

“We are committed to the provision of nutritious, hygienically processed and packed dairy
products to the community.
We are committed to improve and sustain our reputation for quality in all our operations,
whole maintaining competitive prices.
We are committed to build and maintain loyal relationship which will bring out mutual
prosperity to customers, suppliers, shareholders, employees and the community.”

COMPANY’S VISION
“To be the leading tasty milk Provider in Pakistan by offering the healthy & tasty milk
for our Customers while exceeding Shareholder value & Employee Expectations”

“Goals and Objectives”

Expand our business.

• Provide better service to people in the field of telecommunication.
• Emerge as a leading telecommunication company.
• Attract maximum customers and satisfy them.
• Excel in meeting customer needs.
• Seek employee involvement, continuous improvement and enhanced performance goals.

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Beside this Ice milk Milk’s business objective is to create and market the Company's services in
such a way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners. Ice milk Milk does not favor short-term profit at
the expense of successful long-term business development.
Ice milk Milk recognizes that its consumers have a sincere and legitimate interest in the behavior,
beliefs and actions of the Company, in which they place their trust and that without its consumers
the Company would not exist.

DEPARTMENTS

1. Production
2. Marketing
3. Finance
4. Research & Development
5. Human Resources

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NEW PRODUCT SUMMARY

This product is of packaged milk extension but it has a new thing which was never used before
that in its production a special taste of Apple is included and preserved it in the form of milk.
Due to this addition it has become more hygienic and health building product. It is according to
the international standards and no side effect. The formula was designed after great effort of
research and development department. It has great importance for all ages such as newly
growing children and old people which required any hygienic and healthful product for
improving their diet.

WHY IT IS NEW?

It is new because the flavor which is introduced in this milk was never introduced previously.
The milk is not only flavored for apple but also it has all the ingredients of apple.

FEATURES OF NEW PRODUCT

• Great demand for such kind of service

• Booking can be done
• Credit card facility is also available
• Special Discounts for heavy amount of service used
• Powerful communication, Mobiles, Telephones are available

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• Data is stored in Computer Server
• Proper Recording Systems

ENVIRONMENTAL STRUCTURE

1. EXTERNAL ENVIRONMENT

Purpose of ICE MILK is to capture as much as market as possible along with the
customer satisfaction

SUPPLIES

Ice milk is very much curious about its supplies the delivery of raw material required
should be able to fulfill the market demand on time.

MARKET INTERMEDIARIES

Agencies are the intermediaries for Ice milk, while transportation is the headache of
agencies.
• Distributor
• Whole seller
• Retailer
• Middleman

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2. INTERNAL ENVIRONMENT

It concerned with the management, employees and internal queries of company.

MARKETING SEGMENTATION, TARGETING

& POSITIONING

MARKET SEGMENTATION

“Dividing the market in to different groups of buyers who have distinct needs
Characteristics, or behavior and who might require separate product or marketing mixes’’
The process of dividing the total market for a good or a service into several smaller groups
such that the member of each group are similar with respect to the factors that influence demand.

ICE MILK’S POLICY

Ice milk segments its market according to different wants, buying preferences or product
use behavior. They offer different Ice milk products for different market segments.

1.GEOGRAPHIC SEGMENTATION

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Ice milk has utilized the local channels of distribution, which not only helped them in
reducing fixed investment but would also give something in return to society in term of
employment. The demand of Ice milk in urban areas is more than in rural areas, sale of Ice milk
increases in summer seasons.

2. PSYCHOGRAPHIC SEGMENTATION

Changing life-style brought innovation to the market and Ice milk is well aware of these
changes. The women in this region represent a large portion of the society and for them product
are really important for family and a part of their lifestyles. Similarly the courteous and friendly
attitude of people made Ice milk the choice of serving tables.

3. DEMOGRAPHIC SEGMENTATION

Ice milk frequently conduct constructive demographic surveys in order to get the clear
picture about various market segments and forecast the future sales of the company. Mostly they
use age, income, gender, social class, and occupation for demographic segmentation.

4.BEHAVIOURAL SEGMENTATION

In this kind of segmentation Ice milk focusing on the user rate and also focus on
the user status, loyalty status .According to that status Ice milk make his policy

Ice milk gives you taste & makes you

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TARGET MARKET STRATEGIES

After a company has segmented a market management must select a market, management
must select one or more segments as its target market. Ice milk offers various varieties like milk,
yogurt, tea-max, and juices for different segments.

MULTIPLE SEGMENT STRATEGIES

Ice milk adopted multiple segment strategy. It develops a separate marketing mix to reach
each targeted segment e.g. Ice milk offers various products for different segments like milk,
yogurt, tea mix, juice etc.

POSITIONING

“ To capture or occupy a distinctive place and position is the way a firm’s product,
brand, or organization is viewed relative to the competition by current and prospective
customers”.

Ice milk gives you taste & makes you

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ICE MILK’S POSITIONING

Positioning is the image of a product or a firm in the eyes of the customers in relation to
the competitor's product and for products offered by the same firm. Ice milk varies its positioning
strategies from time to time depending upon the market situation. The most recent positioning
adopted by Ice milk can be summarized by its Slogans used for different products.

POSITIONING IN RELATION TO COMPETITORS

Milk Pack, Haleeb and Nurpur are the three major players of milk industry in Pakistan.
These have devised their own positioning strategies in accordance with customer’s needs and
wants. Milk Pack puts more emphasis on the taste of the milk inside while Ice milk highlights the
quality and purity, by presenting Ice milk as a part and parcel of the people health styles as they
say Ice milk “The Healthiest milk”.

Ice milk gives you taste & makes you

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PRICING STRATEGIES

NEW PRODUCT PRICING

There are two new product-pricing strategies.

1. MARKET SKIMMING

Setting high initial prices for new product to skim revenue layer. Quality and image
support the higher prices to attract interested consumers. Competitors should not be able to enter
market

Conditions
 Brand name should support high price
 Cost of producing smaller volume cannot be so high otherwise the

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Advantage of high may be disturb
• Our competitors should not in position to immediately launch the
Same product

2. MARKET PENETRATION

A strategy for company growth by increasing sales of current

Products to current segments without changing the products
“Set low initial prices to penetrate the maximum
Into the market share.”

Conditions

• Market should price sensitive that low price produce more market growth.
• Production and distribution cost must fall as sales volumes increase.
• Our product low price must help keep out the competition.

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PRICE ADJUSTMENTS

DISCOUNT AND ALLOWANCES

“A state reduction price of purching during a stated period of time”

“Promotional money paid by manufacturer to retailer
in return or an agreement to feature the manufacturer
Product in some way ”

We provide in our product Ice milk milk of

Deductions from the base price to reward customers.

PRICE DISCRIMINATION

Discounts and allowances to allow various or different customers regarding different products
and locations On order base.

SPECIAL PRICING STRATEGIES AND

SITUATIONS

• PSYCHOLOGICAL

Adjusting prices for psychological effects. Rs.299 Vs Rs.300

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• PRODUCT LINE PRICING

Developing product lines for introducing pride steps rather than single
product after the Ice milk milk we also introduce the new product in same
Categories’ for pricing

CAPTIVE PRODUCT PRICING

Pricing products that must be used with the main product.

• PRODUCT BUNDLING PRICING

Pricing bundles of products and sold together.

PLACE DECISION

• Distribution Channel
• Market Coverage
• Specific channel members
• Inventory Management
• Warehousing
• Distribution Centers
• Order Processing
• Transportation
• Reserve logistics

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PROMOTION

Promotion is the specific mix of advertising, sales promotion and public relations used by
a company to peruse its advertising and marketing objectives.
Promotion decisions are related to communicating and selling to potential consumers.

OBJECTIVES OF PROMOTION

A target audience can be in any of the six stages of buying readiness.

• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchas
• These are called hierarchy of effects

AWARENESS

The seller’s task is to let the buyers know that the product or brand exists. The objective
is to build familiarity with the product and the brand name.

KNOWLEDGE

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Going beyond awareness to learning about a product features.

LIKING

How the market feels about the product

PREFERENCE

Distinguishing among brands such that the market finds your brand more attractive than
alternatives.

CONVICTION

Making actual decision or commitment to purchase.

PURCHASE

Finally buying the product.

PROMOTION MIX
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• Advertising
• Public Relations
• Personal Selling
• All other sales promotions

PROMOTION STRATEGIES

ADVERTISING

Any non-personal paid form of communication using any form of mass

media. It involves three important notions

REACH

Is the percentage of the target market, which is affected by your

advertisement?

FREQUENCY

Is the number of time a person is exposed to your message?

MESSAGE

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Sometimes, it is called a creative. It gets attraction, capture interest, create desire and
finally require action

PUBLIC RELATIONS

Involves developing positive relationships of public with the organization via media.

SALES PROMOTION

Commonly used to obtain an increase in sales. Could involve using money off coupons or
special offers and discounts.

PERSONAL SELLING
Selling a product and service one to one.

DIRECT MAIL

There has been a massive growth in mail campaigns over the last 5 years.

Greeting cards

We contact with customer through greeting cards

And tell about the new product

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Conclusion

Ice milk is ready to meet the challenges of changing environment

because it follows all basic principles of marketing.
In this report we have tried our best to cover Product, Price, Promotion
and Price of Ice milk Milk. The goal of the marketing department is to
outline the strategies, tactics, and programs that will make the sales goals possible.
Marketing is playing a vital role in the success of Ice milk Milk.
Ice milk Milk is building a brand around the services it offers by heavily promoting itself
through local television, radio, and print advertising.
Marketing efforts are just beginning by the time a potential customer enters Ice milk Milk family
for the first time. A strong emphasis will be put on keeping customers and building brand loyalty
through programs focused on experience and customer satisfaction.

Ice milk gives you taste & makes you

healthy