Nestle Fruit Yogurt Company

snuggle Fruit yoghurt CompanyAbstractNestle Fruit yoghourt is one of the famous product launched by Nestle solely over the world. Most of the countries where Nestle has launched it, take up accepted the product rattling well. This shows that product has probable and if marketed properly croupe do wonder by enhancing Financial statement profits for Nestle. Here we be making an analysis of UAE as Nestls upcoming destination of submission Fruit Yogurt. In this study we are seeking financial, marketing and Resource formulation of Nestls launching campaign in very first course. This analysis bunghole help Nestle in making deciding whether to launch the product in Emirates and how to launch the product.Executive SummaryA marketing plan unremarkably provides a sound framework for development of marketing strategy for any product. There is a list of action items comprehensive of objective, sales budget essential, resource requirement etc. Its very relevant part of the native business plan. In our first submission, we had talked at length regarding ethnic and economic analysis related to market and features of offered product. This project submission ordain be taking us forward from where we had left in the tolerate assignment. Here, We exit take closer look at the nuances of running a good business like understanding target market, designing suitable advance strategy, having total overview of distribution marketing and production processes.The last part has explained in detail well-nigh the benefits of the Nestle Fruit Yogurt. It has also explained how it is suitable for UAE climate and how its launch in United Arab Emirates pass on make a bare-assed crusade of having healthy snacks and lunch. We, in last part, also analyzed that the market condition of UAE and preference and desires of Emirates.Now, in this study, we are going to study how to market the product how pass on it work in the UAE. We are going to analyze fully what allow for so ak up Emirates to our product. tralatitious court to look at any product that is based on marketing involves the understanding ofFinancial entropy. crossway dataSales and distribution data Advertising and sales promotion data We are going to approach this study in this traditional approach to make a detailed food market launch analysis of the product. (Yogurt)Marketing PlanIntroductionMarketing Plan depart analyze how to strategize the launch of Nestle harvest-time Yogurt in UAE. It will check out the advertisement, Promotion and aimaging plans for this new product. The detailed will work as the initial plan for the launch of the product in UAE and it will be subjected to change gradually as the sale will follow the expectation or will deviate from its initial plan.Marketing im individualized tooshie MarketSince Nestls fruit Yogurt will be totally new product in UAE and therefore is not well cognise. In our last submission, we had highlighted astir(predicate) specifically targeting the age group of 15-35.This was basically based on the consumption trend of this group.Expected Sales Sales objectives define the projected amount of money of goods that groundwork be sold. Hence it is very relevant for the success of businesses that realistic and achievable objectives should be set. We are expecting the total sale of 650 long tonnages of Nestle fruit Yogurt in United Arab Emirates. Our expectation is very optimistic as it is nearly 60% of the total present market.Profit ExpectationAs we are planning to have 650 tonnages of sale in UAE, therefore we are expecting Nestle to have at least profit of 9% around on the product which comes in the range of 0.09 percent*650 tonnages *9463 AED per tonnage 553,385 AED which is really decent as we can see that this is just a launch year.Promotion MixAdvertisingObjectiveMain objective of advertisement is that it will be to drawing attention of the health conscious customers towards Nestle fruit Yogurt. Since the Ne stle Fruit Yogurt belongs to subsidy segment where more stress will be provided to attract urban area customers who are willing to use something new.Actually if we start trying segmenting of the citizenry of UAE, we can segregate UAE people into two major categories. One who usually prefers to have new products present in the market and these people are usually called experimenters. Other kind of category which tries to retain their own age-old family used brand which usually bar them from taking any new product.Seeing this, we get to make its Nestls image to look as fashionable and premium class. To make this image, we can try using some Hollywood star who can endorse our product and which is youth icon famous among Emirates. Media MixWe are planning to use the media fluff in such a way to approach every single people in Emirates to make them aware of this new product coming in the market. Since ours will be the first troupe launching this product on such a large scale in UAE t herefore it can become a tough task to inform to improve consumers about health benefits and differentiation of our product from the entire existing product in the Emirate market. Hence we need to use below given promotion media mix cubicles Advertisement in magazines, television and newspapers. TV program. Banners Billboards.The way we are planning to make this promotion is to have it in various phases. Actually, In first phase, we are planning to have awareness program. Then in next phase we are planning to market the real product among the Emirates finished use of hoarding, kiosks, banners and all the other media methods. put acrossNestle Fruit Yogurt should be aiming to recognized as a healthy food product company. This company wants to be known as a firm which usually provides high quality health products. Idea will be to convey its young and premium image to the consumers. Message should be something similar to Taste with Health.. Try me. followAdvertisementTV Advertisemen t40000Newspaper Advertisement20000Kiosk Advertisement10000 powder magazine Advertisement20000Banners10000BillBoards10000Promotion10000Advertising outgo $ 120,000.00 Sales Promotion ObjectiveThe objective of sales promotion is usually to attract more and more consumer in the very first year. This will be done by the help of affordable micro packaging of size piddling as 100g. This will be the smallest container that should be available among the customer because tinier than this package can affect the brand image of Nestle which is the last thing Nestle company want to do. PremiumsPremium is used in a way in order to associate our product with real use product postulate by segment we are planning to target. Since here for Nestle fruit yogurt we are targeting premium segments youth who are really conscious about their health we can offer them some diet lighten sugar product.Coupon Other kind of consumer attraction tactics that usually comes when some new product is launched is the Coupon Tactics. Here with Nestle fruit yogurt we can plan to give some consumers who are winning lucky draw, a free gym coupon to some posh area gym.CostCost allotted with promotional strategy will be less only as company will be targeting more of awareness and less of sales. Therefore company will be stressing more on advertisement and less of promotion which appears from the budget itself which allots $10000 only for promotion activities.Personal sellingIn the initial stage company is not planning to sell its product the personal selling as this will reduce the companys brand image which is really good considering the international brand image of Nestle.Other promotional MethodPromotional strategy which Nestle is planning is already mentioned. As of now, Nestle fruit Yogurt product will not be experimented using some eery and innovative promotional technique. May be it can work Nestle will not be taking risk in UAE market.Distribution from founding to DestinationMode of Distri butionNestle like all of its dairy product will prefer roadways mode of transportation. It will distribute its product to the wholesalers and retailers through Nestle Van which will have freezing facility available with it. Products are of lesser expiry date therefore it will be preferent for Nestle to have its own distribution system to avoid delayed delivery. PackagingMarking and Labeling RegulationsUsually, on any package, many kinds of labels are used. Many whitethorn include product certifications and trademarks and the food authority approvals. In order to utilize full use of packaging, it is suggestible to publicize the health benefits related with Nestle fruit Yogurt through labeling. ContainerizationTo avoid piracy and ease operational requirement company should always use bar codes, identification and RFID numbers. This should be done for untroubled shipment tracking of the goods. Another related important aspect which needs to be considered is the container beats. It should be of international standard.CostsPackaging use a probatory portion of total cost related with a product. For example, in Dairy Product industry, packaging cost may be as high as 30% of total cost. Whatever be the case company should try to reduce this cost as much as possible. Following international standard of hygiene and maintain a premium quality forces determine to increase to go beyond the limits. Therefore company should try to use some safe strategy to reduce the packaging cost to be as low as 10% of the product in long term. Price Determination pane CostIt will be there as always but usually depends who is going to bear this charge company, wholesaler or retailer. Here it will be borne totally by wholesaler only. Wholesaler will need something in order to take this cost and keep making profit. Therefore company is giving hefty commission to the wholesalers 13.5 %. Handling ExpensesHandling expense for making the product to reach on board to fulfill the requireme nt of FOB will be borne by company itself. This cost will be included in other miscellaneous cost.Whole and Retail Mark Up and DiscountsProduct CostPercentage of CostFruit Yogurt Cost(650 ton) $ 1,100,000.00 72.7%Packaging Cost $ 110,000.00 7.3% marketing Expense $ 85,000.00 5.6%Advertising Expense $ 120,000.00 7.9%Distribution Expense $ 93,000.00 6.1%Misc Expense $ 5,000.00 0.3% $ 1,513,000.00 Selling equipment casualty(Profit bound 8.7%) $ 1,644,631.00 Final PriceAED priceProduct Cost $ 1,513,000.00 AED 5,555,736.00 Selling price(Profit Margin 8.7%) $ 1,644,631.00 AED 6,039,085.03 Selling Quantity we are targeting (Ton)650Company PriceSelling price per ton $ 2,530.20 AED 9,290.90 Selling price per Kg $2.53 AED 9.29 Selling price per 250g Pack $0.63 AED 2.32 Selling Price per 100g pack $ 0.025 AED 0.09 Wholesale Price (13.5% WS Commission)Selling price per Kg $2.87 AED 10.55 Selling price per 250g Pack $0.72 AED 2.64 Selling Price per 100g pack $0.03 AED 0.11 Retail Pric e (13% Retail Commission)Selling price per Kg $3.25 AED 11.92 Selling price per 250g Pack $0.81 AED 2.98 Selling Price per 100g pack $0.03 AED 0.12 (Statistics, 2003)Pro-formal financial Statement and BudgetIntroductionIn this plan we are going to study detailed financials about the Nestle Yogurt Product. The product financial will include product costing and product pricing for the UAE market. Most of the pricing we are doing in $ price and at last we are converting them in AED terms.Marketing BudgetAdvertisement/Promotion ExpenseAdvertisementTV Advertisement $40,000.00 AED 146,880.00 Newspaper Advertisement $20,000.00 AED 73,440.00 Kiosk Advertisement $10,000.00 AED 36,720.00 Magazine Advertisement $20,000.00 AED 73,440.00 Banners $10,000.00 AED 36,720.00 BillBoards $10,000.00 AED 36,720.00 Promotion $10,000.00 AED 36,720.00 Advertising Expense $ 120,000.00 AED 440,640.00 Distribution ExpenseDistribution CostStore Payroll $ 20,000.00 AED 73,440.00 Store Management $ 1 0,000.00 AED 36,720.00 demand $ 10,000.00 AED 36,720.00 Utilities $ 10,000.00 AED 36,720.00 Depreciation $ 10,000.00 AED 36,720.00 Repair $ 20,000.00 AED 73,440.00 Maintenance $ 13,000.00 AED 47,736.00 Total Distribution Expense $ 93,000.00 AED 341,496.00 Product Costprocess Milk to Yogurt costRaw product Milk(600 ton) $800,000.00 Processing Variable CostSugarStabilizersFruit /FlavorsBacteria CultureFuelTotal $200,000.00 Processing Fixed Cost $100,000.00 Final Yogurt product(620 ton) $ 1,100,000.00 Product CostPercentage of CostFruit Yogurt Cost(650 ton) $ 1,100,000.00 72.7%Packaging Cost $ 110,000.00 7.3%Selling Expense $ 85,000.00 5.6%Advertising Expense $ 120,000.00 7.9%Distribution Expense $ 93,000.00 6.1%Misc Expense $ 5,000.00 0.3% $ 1,513,000.00 Selling price(Profit Margin 8.7%) $ 1,644,631.00 Final PriceAED priceProduct Cost $ 1,513,000.00 AED 5,555,736.00 Selling price(Profit Margin 8.7%) $ 1,644,631.00 AED 6,039,085.03 Selling Quantity we are targeting (Ton)650C ompany PriceSelling price per ton $ 2,530.20 AED 9,290.90 Selling price per Kg $2.53 AED 9.29 Selling price per 250g Pack $0.63 AED 2.32 Selling Price per 100g pack $ 0.025 AED 0.09 Wholesale Price (13.5% WS Commission)Selling price per Kg $2.87 AED 10.55 Selling price per 250g Pack $0.72 AED 2.64 Selling Price per 100g pack $0.03 AED 0.11 Retail Price (13% Retail Commission)Selling price per Kg $3.25 AED 11.92 Selling price per 250g Pack $0.81 AED 2.98 Selling Price per 100g pack $0.03 AED 0.12 Other CostMisc Expense$ 4,000.00Pro forma annual profit and loss statement (Profit year)Profit And Loss StatementAEDIncome receipts $ 1,644,631.00 AED 6,039,085 ExpenseCost of Goods Sold 800,000.00 AED 2,937,600 Processing Variable Expense 200,000.00 AED 734,400 Processing Fixed expense 100,000.00 AED 367,200 Packaging Cost $ 110,000.00 AED 403,920 Selling Expense $85,000.00 AED 312,120 Advertising Expense $ 120,000.00 AED 440,640 Distribution Expense $93,000.00 AED 341,496 Misc Expense $ 5,000.00 AED 18,360 Total Expense1,513,000.00 AED 5,555,736 EBIT $ 131,631.00 AED 483,349 Interest $55,000.00 AED 201,960 EBT $76,631.00 AED 281,389 Tax 20% $15,326.20 AED 56,278 Net Income $61,304.80 AED 225,111 (Ng, 2007)Resource Requirements IntroductionWhatever is the marketing plan, until and unless you are not getting your Resource requirement fulfilled, you cannot start a business. This section, we will study about the way the company will be able to get its resources right. cash in handUsually Company gets its finances from either debt or equity or through some stake acquisition by some other firm. It will be totally dependent on cost of capital of raising money from the market and cost of debt of raising money from debt. We are assuming to have overall cost of capital as 5%. The launching project will include total requirement of 1.1 million out of which company can plan to have 6 million as debt and 5 million as equity.PersonnelAny firm while expand ing or launching a new product will require some Personnel. The company should be ready with kind of skills portfolio which company will need for its operation. There can be many skills portfolios which company can look into while planning for the launch of new product likeHR personnelMarketing Personnelfinance PersonnelOperation PersonnelSales PersonnelLaborsMachine specialistsDistributor personnelDepending on the scale which we are launching, Companys requirement will be decided. For the 650 tonnages of requirement company will need as per followsMarketing60Sales600 Operations (including distribution and packaging)1200Finance10Human Resource40information Technology5Production CapacityProduction capacity should be planned as per companys aim of expanding in future. As per seeing Nestls trend of expansion plan in other countries, we can assume following as companys capacity requirement in future.First year 650 tonnagesSecond course 900 tonnagesThird Year 1050 tonnagesFourth Year 12 00 tonnagesFifth Year 1400 tonnagesNestle should have production capacity accordingly.ConclusionAs we can see from the analysis, we can conclude that the launch of Nestle Fruit Yogurt in United Arab Emirates will be a sure success. Estimated Income statement of very first year is showing Net Income of