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How to design step by step marketing strategy for Dairy and Food Product - II
In continuation to my earlier article How to design step by step marketing strategy for Dairy and Food Product - I today I will include few more important points to be considered while designing a marketing strategy for Dairy and Food Product.
Varieties of a Single Product.
Different people have liking for different flavors and tastes. Therefore, in order to cater to the liking of a large number of consumers, varieties of tastes and flavors in food products are of great advantage to manufacturers. Examples are sweet and salted lassi, plain and spiced cheese, different flavors of ice creams and among bakery products sweet and salted biscuits, etc.
Pricing
The strategy to fix the price of a product must be very accurate. A very low price will not cover the various costs of production, marketing and other overheads and will not be profitable. A very high price will not be able to compete in the market with similar product. Price is an extremely sensitive factor as this could either make or break a product. The affordability aspect of the target consumer is very important. One can keep a reasonably low price of the product initially in order to gain an entry into a competitive market. Once the product is successful in getting a good share of the market, the price can be increased for better profits without losing the market share.
Distribution Network
Another important aspect of a successful marketing is the distribution network. Whether we are in a local market or a regional market, we must have a strong network of committed distributors and retailers. The product must always be made available to the distributors and retails which in case of dairy and food products may be a departmental store or restaurant or a vending machine at the right time, in the right quanitity and n the desired pack size. Desired pack size means that if in a particular ice cream parlour, the maximum demand is of 100 ml cups, we must keep there maximum quantity of 100 ml cups only. It is important to note that the product should always be available in the market in adequate quantity and stock out situation should not occur.
Promotional Activities
Promotional activities like advertisement campaigns in various forms are very essential not only for new products but also for established products. Advertisement keeps on reminding the consumer about the presence of the product and its merits. Even after three to four decades in the market, Amul has been continuously advertising its products to maintain its leading position. Other companies also have not stopped advertising their products - like Bournvita, Complan, Britannia biscuits, Parle-G, etc. and have been successful in maintaining their market share. Whereas advertising helps in increasing the consumer awareness about a product, distributors and retailers play a major role in promoting a particular product in competitive markets. Therefore, it is necessary to keep distributors and retails happy by giving them various incentive schemes and discounts for increase in sales.
Brand Building
A product is manufactured in a factory but a brand is created in the minds of the consumers. Today's market is rapidly changing into a market of branded products. People say that andquot;it is the brand name, which sells and not the product.andquot; A series of continuous efforts in the areas of quality of the product, packaging, distribution and advertising is required to make a brand name of a product. We must make a note of it now that branded food and dairy products will have a very large chunk of the market share in the years to come.
Ultimately it is the consistent quality which is the winner. No amount of sales promotion, advertising, good packaging and efficient distribution channel will work, if the quality of the product is substandard. Poor or average quality products will eventually give way to better quality products which provide the consumers andquot;best value for their moneyandquot;.
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Mr. SK Sinha, Vice President, BDA Limited, Mumbai
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Date: Mon, 17 Nov 2008 -
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