-:Marketing:-

“Marketing is a Managerial process of identifying, anticipating and satisfying customer

needs through product offering within objectives to earn profit”.

Marketing completes in four major steps:

• Product
• Price
• Promotion
• Placement

In case of SARAB industry, all of four steps will be completed in following ways

1) Product

Selection:

Powder milk for babies

Reason:

As in case of marketing, product can not be sold directly. We should check its value,
demand, market configuration etc. So, we have selected the baby powder milk after a
great research.

Product designing:

Baby milk will be produced in such a way that it will attend the consumers. After their
attention, our organization will satisfy them with the good quality of our product. Then
we will try to get their retention and will try to make them permanent customers.

2) Price

“Price is the money value which assigned to a particular product, keeping in view its
value and cost”.

Objectives of SARAB industry in pricing strategies:

o Price discrimination:

“Different prices from different customers will be charged for the same product, at the
same time, in the same market”
SARAB industry will use the price discrimination for the people living in the different
areas according to their income level. It means we will sell the milk at local, national and
international level.

Graph:

Quantity Market price

3 packs Local 1320 Rs.
3 packs National 1350 Rs.
3 packs International 1380 Rs.

Through price discrimination:

Total revenue = 1320+1350+1380 = 4050 Rs.

Through same price:

Total revenue = 1320+1320+1320 = 3960 Rs.

So,

4050-3960 = 90 Rs. (profit)

 o Peak low pricing:

We will low the charge on our milk product when it will get a great demand. But if its
demand decreases, then we will reduce its price.

o Two part pricing:

As SARAB Industry will do efforts for the customer’s retention. So, our marketing
departments will make the permanent customers. For this purpose, we will give the
opportunities to our customers (those who are the permanent) to pay the price by
installments. But there will be certain rules for the customers who want to pay price by
installments. Those are as follow:

• We must have his/her postal address, contact no., and ID card (copy).
• Customers can enjoy the benefit of installment, if they purchase 10 packs of
SARAB baby milk. It means the minimum limit for installment is to buy 10
packs.
• Customers have to pay 50% of the total price in advance.
• Installment period will be particular, which is 2 months.

o Commodity bundling:

We will apply commodity bundling technique while market our milk product at the time
of sale, which means BUY NONE OR ONE. We will attach two packs of SARAB milk
and will give 20% to it.

o Price matching:

We will compare the prices with other shops in the market. As consumers are the prices
sensitive. So we will satisfy them that our product price is low than nestle but its quality
is better than them.

o Brand loyalty:
Consumers are branding sensitive. It means, they focus on the quality of the product and
are ready to pay any amount to get good quality. So, our main objective (as we have
described above) is to produce better quality and to create variety in our milk product, in
order to extend our brand name.

3) Promotion

“Promotion means promote or introduce the product to the people”

We will promote SARAB milk to attract the customers more and more. The question
arises that what is meant by promotion of SARAB milk?

So the answer is

• Utility of product
• Characteristics of product
• Benefits of product

We should convert the above messages to the people to make them aware with the quality
of our product e.g.

Nestle and Morinaga are producing the same product i.e. powdered milk for babies but
promote their milk products in different ways. Same case will be here with our SARAB
milk.

Tools for promotion:

1) Advertisement:

“Advertisement is a formal message convey to the people”.

We will launch SARAB milk in video, audio, and written form. We will give the
advertisements on TV, radio, internet, mobile SMS, LCD boards and commercials.
Our logo for the advertisement in any medium will be:
Our mono will be:

Logo for our pack will be:

2) Sales promotion:

“To promote the product, not through add but through other means”.

Organizational identity:

Every organization has its identity to attract, aware and inform the people about its
product. E.g. organizational identity of nestle is:
In case of SARAB industry, organizational identity will be:

So main focus of sales promotion is to make our organization broader than broader.

4) Placement:
We will place our product in general stores. We will not have our own store. But we will
have agencies, which will market that products.

Our marketing strategies will include the following steps.

• Identifying the problems of people

• People’s need and satisfaction
• SWOT analysis

Identifying the problems of people:

We are going to launch a new milk product in market for the first time at which the
people are facing many problems and need their satisfaction and solution.

People problem is that they are living in those areas where the powder milk is not
available in local markets, they are not aware of powder milk, so our target is to provide
the milk to the people living in those areas and the second problem is facing by those
people who are already using the powder milk but they are not satisfied with that milk
because ingredients (vitamins and proteins) are not in sufficient amount to fulfill their
children requirements. So we are launching the powder milk to fulfill the people need and
also for the satisfaction of people.

People Need:

Our field work is for those areas which are discussed above. A large number of people
don’t belong to elite class. They demand fresh, cheap and pure milk for their children but
the milk product offering by other companies are expensive. It is not affordable for
middle class so they want cheaper product than others. It means their first preference is
quality and cheap price and also the availability of powder milk.

There are also some companies those are offering low quality milk at cheap price but
when our company will contribute its product in market at demanded price and quality.
Then people will accept our product.

SWOT Analysis:

For SARAB industry, SWOT analysis is a tool for auditing an organization and its
environment. It is the first stage of planning and will helps marketers to focus on key
issues.
Once key issues have been identified, they feed into marketing objectives. It is a very
popular tool. During the SWOT exercise, list factors in the relevant boxes. It's that
simple.

SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors.

Strength will be:

• Our specialist marketing expertise.

• A new, innovative product or service
• Location of our business
• Quality processes and procedures
• Any other aspect of our business that adds value to your product or service.

A weakness will be:

• Lack of marketing expertise

• Undifferentiated products and service (i.e. in relation to your competitors)
• Location of our business
• Poor quality goods or services
• Damaged reputation

Opportunities and threats are external factors.

An opportunity will be:

• A developing market such as the Internet.

• Mergers, joint ventures or strategic alliances
• Moving into new market segments that offer improved profits
• A new international market
• A market vacated by an ineffective competitor

Job opportunities

• Now at this point as we have made a successful plan and organized structure of
SARAB industries. To do work in our industry we need a lot of workers and
employees. Our first job is to hire supervisors and workers. This task will be done
my human resource department. To fill all the vacancies in our company we need
a lot of persons for the availability of SARAB industry.

A threat will be:

• A new competitor in our home market

• Price wars with competitors
• A competitor has a new, innovative product or service
 • Competitors have superior access to channels of distribution
• Taxation is introduced on your product or service

Simple rules for successful SWOT analysis in our organization

• We will be realistic about the strengths and weaknesses of our organization

• Our analysis should distinguish between where your organization is today, and
where it could be in the futures
• We will be specific. Avoid grey areas.
• Always analyze in context to our competition i.e. better then or worse than your
competition
• We will keep our SWOT short and simple. Avoid complexity and over analysis
• SWOT is subjective.