sme markting plan

7/31/2019 SME Markting Plan

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Distribution

Distribution of products from the factory to the customer involves transport and storage. Efficient

management of the distribution system is essential to preserve the safety and quality of products, to

ensure a high level of customer service, and to meet its commitment to environmentally sound business

practices. To this end, we selects appropriate transportation modes, with particular attention given to

optimum unit loads (pallets), vehicle-capacity utilization, route planning, and consolidation with outside

partners, scheduling, and fuel conservation; optimises warehouse and distribution center locations and

environmentally efficient operational systems; and identifies and implements measures to reduce

energy consumption and waste. We encourages its distribution service providers to use environmentally

sound practices

PLACEMENT OF FINISHED GOODS INVENTORY

The fundamentals decision is where to stock an inventory of finished goods there can be two alternates.

Forward Placement Backward placement. FORWARD PLACEMENT In forward placement finished goods

are stored closer to customer .we use forward placement as they use to keep the stock of finished goods

in their regional offices and distribution centers. From the distribution centers the goods are further

sentto the retailers. BACKWARD PLACEMENT In backward placement finished goods are stored at themanufacturing plant where they keep goods stocked. So in this way we use backward placement also. So

for inventory placement Milkpak uses a mix of forward placement and backward placement in order to

provide goods to the market on time.

TARGET MARKET

Currently the Caribbean overall ice cream/yogurt market is on a growth trend and the current

emphasis on healthy products only makes this trend more promising for low-fat frozen yogurt served

with natural toppings as it allows customers to satisfy their urges for delicious ice cream related

products without compromising their diet or health concerns. As the local market is heavilyinfluences by U.S. trends we would use the statistics available in the U.S. as local data is not available

for this industry. So it is noted that in the U.S. take home products dominate the industry at 66% of

the market share, while impulse ice cream has 14%, artisanal ice cream 10% and frozen yogurt 9%.

Hence Myogurt Shoppesunique product format and healthy yogurt materials ensure that the

enterprise can compete with the impulse and artisan ice cream segments but because of the sheer

size of the take home market, My Yogurtsimply cannot ignore developing distribution channels and


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relationships with other businesses that can form unique marketing alliances for its products.

DISTRIBUTION STRATEGIES OF MILK PAK

Distribution plays important role in success and failure of any organization. The organization may fail, ifits distribution networks are not efficient and unable to provide the necessary items at required place

and at reasonable time. Distribution system of Nestle is one of major source of competitive edge over its

existing rivals. We have our own distribution networks equipped with all necessary transportation

facilities. They transport their products at major ten regional sales offices, which are situated at different

cities of Pakistan. These sales office (distribution centers) have their own vans with sales people who sell

and transport goods to the small retailers .In general we followed following sequence for distribution of

its products. In general, we has following two distribution strategies: Selective distribution strategy

Extensive distribution strategy For some products, we adopt selective strategy in which firm distribute

its products on few selective retail outlets while for some products, we go for extensive strategy in

which we distribute our goods on all possible retail outlets.

SELECTION OF TRANSPORTATION

For transportation of goods to the regional offices Milkpak has it own vans and other vehicles. For

further distribution to retailer the distributor of each area uses its own vehicles. For the milk collection

the Milkpak has their own tankers, which are made of special material to maintain the quality of milk.

FORECASTING

Fore cast is a prediction of future events used for planning purposes. Forecasts are needed to aid in

determining what presences are needed, scheduling existing resources and acquiring additional

resources. Accurate for casts allow schedules to use machine capacity efficiently, reduce productions

times and cut inventories. Forecasts are needed to anticipate changes in prices or costs or prepare for

new laws or regulations, competitors, resource shortage or technologies. Forecasting methods may be

based on mathematical models using historical data available, qualitative methods drawing on

managerial experience or a combination of both. We will forecast the demand of products on annuallybasis with mutuall understanding between planning and selling departments on the basis of historical

data and sales forecast estimates. Well conduct monthly meetings and fine tune the forecast on

monthly basis. As in summer when availability of milk is scarce and demand is high, we have stock in

winter to meet this demand.


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PROMOTION

Producing a quality product, pricing it attractively andmaking it available for the target consumer is not

the onlyproblem companies need to solve. Modern era is the era of communication with customer,

assuring customersatisfaction, demands for personal and non-personalcommunication with the target

customer to build arelationship with them. In an area-storming activity, givingout products free, gift

hampers, attracts new customers;kites depending on the season (for existing and potentialcustomers)

are given. The basic purpose is to explore thearea that is being unexposed and to bring awareness in

thepeople.

PROMOTION STRATEGY

My Yogurt Shoppe will focus its initial marketing campaign on developing strong word of mouth

advertising through a variety of initial marketing activities designed to create marketing buzz:

Grand Opening: The Grand Opening will last a week and will consist of press releases to the

local radio stations and newspapers and give-aways on their programmes. Additionally, Myogurt

Shoppe will offer a prized give-away for the 500th

customer as well as a host of printed take- aways

such as pens, pencils or T-Shirts.

Customer Loyalty Program: My Yogurtwill provide customer loyalty cards to every patron that

will be stamped each time a purchase is made. The customers will receive a frozen yogurt cone

on their 6th visit and a frozen yogurt cup on their 10th

visit. This program will create the means by

which Myogurtcan gain regular customers who tend to spend more time in-store when redeeming free

product cards in the same manner that gift cards in other retail outlets generate higher sales. There will

also be a location on the customer loyalty card where the customer can fill out his or her email address

and phone no.

Additional Incentives: 1) My Yogurt will ask customers to fill out their birthday details on a

membership form so they can receive 25% - 50 % discounts on their birthdays from the shop. 2) In

addition, text messages/emails can be sent to random customers offering them discounts on special

days like buy one get one free or similar incentives. 3) Myogurt will partner with popular radio

stations and newspapers to offer giveaways on select programmes to their listeners or readers.

PRICING STRATEGY


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The pricing strategy for a new product should be developed so that the desired impact on the market is

achieved while the emergence of competition is discouraged. Two basic strategies that may be used in

pricing a new product are skimming pricing and penetration pricing.

Skimming Pricing Skimming pricing is the strategy of establishing a high initial price for a product with a

view to skimming the cream off the market at the upper end of the demand curve. It is accompanied

by heavy expenditure on promotion. A skimming strategy may be recommended when the nature of

demand is uncertain, when a company has expended large sums of money on research and

development for a new product, when the competition is expected to develop and market a similar

product in the near future, or when the product is so innovative that the market is expected to mature

very slowly. Under these circumstances, a skimming strategy has several advantages. At the top of the

demand curve, price elasticity

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