https://www.youtube.com/watch?

v=g_YOoUDdntAMarket analysis
Milco highland ambewela
Kotmale RDT
Royal dariy sri lanka
Milrain milk
Lucky
Fonerra
Nesla
Chello driay
Richlife
Lii

Lanka milk foods daily
1. Five Forces model
2. The dairy industry has immense potential to contribute considerably to Sri
Lankas economic development. A traditional industry surviving thousands
of years, milk production also plays an important role in improving
nutritional poverty in all age groups. And it is a source of wide-ranging
employment opportunities.
3. This study is on Lucky Lanka Milk Processing Company Limited which is
well-known as Lucky. This is an organization which has many
opportunities to spread their products over Sri Lanka. Lucky has
experienced staff, fresh milk, and use vast technology in their production.
With all these Lucky has been able to capture 18% of the dairy market
which is comparatively low. In this paper the author will seek the possible
opportunities for them to capture the market share and put forward
recommendations for enhancement to promote the business among the Sri
Lankan consumers.
In this paper, the author endeavor to analyses the role of dairy products in
enhancing the standard of health and nutritional intake of Sri Lankan of all ages

In addition, there are three milk processing companies that have secured the BOI approval to purchase
local milk and produce Ultra Heat Treated (UHT) milk and pasteurised milk. Those are the Lanka Dairies
(Pvt) Limited which markets the popular " Daily " Milk which is a subsidiary of Lanka Milk Foods and
Stassens group, Daily Lanka (Pvt) Limited, subsidiary of New Zealand Milk Products; which is a member
of the Anchor group and the Tropifruit which produces UHT milk under the brand name " Rich Life ".
Under the Maninda Chinthana concept it has given much priority to develop and analyze
trends and improve the efficiency of the milk production sector, The training will enable
outreach services to advise farmers on best practices in buffalo rearing to increase local milk
production levels, thereby increasing the income of small-scale farmers and improving their
food security and livelihoods.

The total processing capacity owned by private sector is about 450,000 l/p/day, but utilise only about 30-
40% of it. Kiriya/MILCO has a total capacity of 220,000 l/p/day and uses some 50% of it.
Also there are several large scale operations in importation and packaging of milk powder. The bulk of
this milk powder is imported and repacked by Lanka Milk Foods Limited and the New Zealand Milk
Products TMOL (Pvt) Limited. In addition, Maliban Milk Products Private Limited, Danish Dairy
Products Lanka Private Limited, Millers Limited, Delmage Forthy and Company Limited, Dutch Dairy
Products Private Limited is also actively engaged in importation and packaging of dried milk powder.
Theoretically, concentrate cattle feed also forms an important input for milk production, but in the
present context the use of concentrates in milk production in Sri Lanka is very negligible. Although there
are several large scale feed mills manufacturing livestock feed in Sri Lanka, the percentage of cattle feed
produce by them is less than 1% of their total feed out put






Introduction
ABC Company has established itself as the leader in Sri Lankas carbonated soft drinks
market, gaining a 47% share and outperforming leading multinationals such as Coca-Cola,
Pepsi and other local brands in a highly competitive business environment. The companys
success is attributed to its marketing strategies and brand positioning, which have taken into
account the psyche of local consumers. Most comparable products in many other countries
have lost market share to multinational brands, but Elephant Soft Drinks has been able to
compete successfully because it has understood local consumers needs better than its
competitors. The latent desire among Sri Lankans to patronize so-called national products has
also helped the brand to establish itself as a market leader.
ABC Company has a four different products range, which gives it a competitive edge. The
company has been able to strategically position these brands, which were previously
considered traditional products by consumers, by consistently investing in them. The
company is also focused on different market segments which include sports drinks, fruit
juices, isotonic and energy drinks, to its range of products. ABC Company has been able to
achieve current position in the soft drink market because the target market is youth out of
different segments of the society.
ABC Company name for over 20 years has always prided itself at keeping their customer in
focus and as such has evolved itself to always be innovative and relevant whilst responding to
the needs of the time. With brand rejuvenation the Company sent out an early indication that
this great brand was getting ready to do greater things - clearly sending out a message that the
brand understands the needs of the new generation as well as the opportunities in Sri Lanka,
and is now gearing itself to leverage its strengths and serve the customer in different way. So
the company has decided to introduce fresh milk brand as a RTD (ready to drink) product.
In 1991, Lucky Lanka Milk Processing Company Limited was established as a small scale
business under the brand name Lucky. This is a dairy products manufacturer, currently
manufacturing yoghurts and pasteurized milk. They are in the forefront of innovating
nutritious products in diverse tastes and flavours. Their product range includes vanilla
yoghurt, chocolate yoghurt, strawberry yoghurt, treacle yoghurt, low fat yoghurt, fresh Fruit
yoghurt, fruit jelly yoghurt and pasteurized milk bottles and milk packets. With a vision of
Creating of healthy generation towards prosperous future in Sri Lanka, mission of To be
the leading dairy suppliers for Sri Lankan consumer by year 2015 and their objectives as
follow;
To provide the best quality, highly nutritious, all natural and certified products
To make our consumers and milk producers aware on the value of protecting the environment
and of supporting family farmers, sustainable and productive farming methods
To serve as an environmental friendly business model which is sustainable and being socially
responsible that will also be profitable
To provide a healthful, productive, enjoyable and pleasant workplace for all employees,
accompanied by skills development and career advancement
To recognize and fulfill our obligations towards the stakeholders and lenders by providing an
excellent return on their investment
In order to be the market leader, Lucky should clearly identify its competitors; develop new
products and timely introduction of new products to the market to take advantage of
opportunities.

Market analysis

The external factors that influence an organization can be identify using a PEST analysis.
This is a simple analysis of an organizations Political, Economic, Social and Technological
and Environment. It emphasized that elements will lead to better understanding of how the
four elements might affect to an organization and how strategies could be formulated.
POLITICAL - With the enhanced political stability and encouraging the local manufacturers
to develop productivity while safe guarding the domestic manufacturer by the government
would definitely have positive effects on the current business situation in the country. The
future of business is very promising and therefore prospects to branching or invest in the
dairy business would be protected. One of the national priorities of the Government of Sri
Lanka is to enable a rapid growth of the dairy sector in order to meet 50 percent self-
sufficiency in national milk production by 2015. The present contribution of buffaloes to
national milk production is approximately 16 percent, however it is considered that there is a
high potential to increase this further.
Policy framework for dairy development is designed and implemented in accordance with the
declared macro-economic policies of the government. Accordingly the major trust of the
policy initiatives for dairy development is directed towards expanding and facilitating the
private sector activities in the production processing and provision of inputs for dairying and
creating a competitive industry structure for all related activities for dairying are key concepts
in the government planning process of dairy development.
The promotion of the liquid milk consumption as against the heavy use of milk powders as at
present among the local consumers is also a major concern in the present policy framework.
The provision of public goods by the state and allowing the private sector to cater to the
provision of private goods are also stated policy objectives of the present government.


The present policies of the government on the various components of the dairy industry and
suggestions for improvement of same based on the findings of the Rapid Appraisal of the
Dairy Sector are produced

Normally in the value added taxation regimes, there is the possibility of obtaining a credit on
the GST payable on the finished product, equivalent to the amount of GST paid on the inputs
used by the manufacturing process. But unfortunately in the case of dairy farming the final
product of the production process, that is milk is GST exempted and therefore the farmers do
not have a mechanism to get relief of the GST they have already paid on the concentrates and
other inputs used for milk production. One may argue that the small dairy farmers operate at
very low production levels and hence their total turnover do not qualify them to register for
GST calculations, and any benefit of input credit on final GST is only a theoretical concept.
But the reality of the present policy of GST on feeds however is that it has resulted in
raising the animal feed prices, and therefore the cost of production of domestic milk.
The higher cost of production of milk also has another implication. The liquid milk and milk
powder being both GST exempted, is applicable both for domestic milk as well as for
imports. It is not difficult therefore to understand that the present cost advantage of imported
milk and milk powders to local milk or milk powders have been increased as a result of the
policy of GST on animal feed.
understandable. However by the present policy of adding GST to cattle feed and exempting
the final product milk from GST to benefit the consumer only shows the insensitivity of
government policy on dairy production.
It is therefore suggested that the government reviews its policy on GST on animal feeds so
that the dairy farmers are given the advantage of such a policy, while at the same time
without burdening theconsumers of dairy products. Rectifying the GST on feed is likely to
increase the use of concentrate feed
for dairying, and hence will have a positive effect on the local milk production. This would
also mean that
there will be a surplus of milk which can be converted to products such as curd, yoghurt, ice
cream, fresh
cream etc.
Pasture and fodder for dairying
At present dairying in Sri Lanka is primarily dependent on pasture and fodder found on road
sides tank
bunds, ravines, and other common areas. Hardly any farmer practices the cultivation of
pastures and
fodder for purposes of dairying. There are many reasons for this farmer behaviour, and the
lack of
knowledge and skills about the possibilities of growing and using pastures and fodder is a
major factor
to reckon.
The pasture development and extension is a function of the provincial DAPHs. However
there is no
strong institutional arrangement either at the provincial level or at the national level to
spearhead a
useful programme for promotion of pasture and fodder for dairy production.
It is however interesting to note that the recently started livestock breeding project by the
Ministry of
Livestock Development and Estate Infrastructure with technical assistance from the National
Dairy
Development Board of India, has a major component of the project on the promotion of
pasture and
pasture utilisation. The present weakness of the institutional arrangement for pasture
development may
become a hindrance for the above project objectives, and it is therefore recommended that the
necessary
institutional changes at the central DAPH, and the provincial DAPH and the Livestock
Breeding Project
are put in place early, so that a meaningful remedy can be made to the present problems on
the expansion
of the pasture base for dairy production.

Trade Policies
The government of Sri Lanka has adopted the open market policy on the trading of dairy
products. As such all dairy products are under open general license system, and the only
requirement the importers of dairy products have to comply with are the standards set by the
Sri Lanka Standards Institution. Full
cream milk powder and the skim milk powder are the 2 important dairy products imported
from out side
sources, and which have an implication on the domestic dairy industry. Full cream milk
powder is the
main dairy product in the formal milk market of Sri Lanka, and skim milk powder is an
important raw
material for the production of items such as ice cream, yoghurt, reconstituted milk etc. Both
these
commodities therefore have a direct bearing on the market prices of domestic fresh milk
which is a
substitute for milk powder or as a raw material for the production of above mentioned other
dairy
products.
Milk powder has a 10% duty rate, and a 4.5% national security levy. In addition the importers
also incur a
cost when opening letters of credit for such imports. This is the stamp duty on the letters of
credit, and at
present it is equivalent to 2.5% of the CIF value of the consignment for import. Although
there some
pressure to raise the custom duty on full cream milk powder and skim milk powder, the
findings of the
study do not tend to support a change of the present duty structure for these two commodities.
Also the
deteriorating rupee-dollar parity rates also has forced the milk powder packers to raise their
prices
accordingly. After the implementation of WTO agreements by the milk powder exporting
countries on
reduction commitments on dairy production, it is likely that the international prices of dairy
commodities
will increase in the international markets. The present effective rate of taxation of nearly 19%
may
therefore be sufficient to give the required protection level for the domestic dairy industry.
In line with the government policy of promoting free market for dairy processing and
marketing, the government in the past has offered several concessions and fiscal incentives to
the private sector to enter into dairy processing

ECONOMICAL
The stability of the economic state of the country will identify secure place for the
new investment s. Stage of a business cycle, current and projected economic
growth, inflation and interest rates, unemployment and supply of labor, labor costs,
levels of disposable income and income distribution and impact of globalization
also effecting the organization.
Dairy Economics and Markets
economics of dairy production, market channels, and finally dairy consumption.
Economics of Dairy Production Farm-level budgets

The revenues and costs of cattle keeping and production, including dairy
production, were estimated
from the results of the household survey. These estimates are shown in Table 4.
Revenues include sales
of milk and animals and the value of milk consumed by the household. Costs
include fixed equipment
and variable costs such as feed and input services. The costs of family labour and
land were not available
from the survey and so are not included. This should be kept in mind when
evaluating returns, which are
thus considered returns to land and labour. Not all zones are shown, as the results
were not judged to be
reliable in some areas due to lack of producer response to questions.

The results show that overall, cattle-keeping households earn returns to land and
labour per household of
nearly SR 28,000 per year, or more than SR 2,000 per month. Per metric ton of
milk overall returns to
land and labour are over SR 10,000, or over SR 10 per litre of milk ( a litre of milk
is approximately 1 kg).
Comparing zones, the highest returns were reported in the Low (Wet) Country,
which includes Colombo.
The high returns there were due to high prices of milk available through local sales
to individuals and
institutions, underlining the importance of informal dairy markets in maintaining
producer profitability.
The lowest returns per household were reported in the mid-country and coconut
triangle, where feed
costs were reportedly high and revenues relatively low. The largest cost
components are for cattle, fixed
equipment, and feeds. Reported expenditures on veterinary drugs and services are
generally quite low.

In the large majority of household cases, dairy and cattle production are only one
component of the
household farm and employment strategy, in which case returns to land and labour
should be viewed
from the point of view of returns per litre of milk. At over SR 10 per litre of milk,
the returns can be
considered as relatively good, considering that milk prices in most collection
centres are in the range of
SR 11-12. The reason that returns are nearly as high as those prices is the much
higher value of the milk
sold to local/informal markets, and the value of sale of animals. Again, it should be
kept in mind that
these returns must also cover the cost of land and family labour. Nevertheless,
these results suggest that
in most cases dairying is an economically viable enterprise, and that the informal
market is critical to
profitability. These results also point to the strong comparative advantage of
domestic producers for the
liquid milk market (the target of most of the informal milk market).




SWOT ANALYSIS FOR LUCKY
1. According to Armstrong (2004), SWOT analysis a strategic planning
technique used to appraise the strengths, weaknesses, opportunities, and
threats concerned in an activity or in a business venture. Author has used
the tool to understand the inside of Lucky and to analyses the internal
environment of the organisation.
2. Strengths
3. Awarding farmers on obtaining best quality high milk yield
4. Introducing Farmer insurance scheme (investment in all areas of the supply
chain ranging from top grade cattle to year round supply of quality grass.)
5. Well-qualified staff ensures the quality of incoming raw materials and the
final products through continuous inspection, monitoring and laboratory
testing including chemical & microbiological testing of each batch (Product
quality is maintained according to the Sri Lankan Quality Standards [SLS])
6. Technical expertise and the technical assistance are always upgraded
through national and international expertise on dairy technology (Lucky
seven flavors are presented in an attractive Ready To Serve and single
serving package system )
7. Continuous in-house research & development activities are undertaken in
order to expand the existing product range simultaneously
8. Weaknesses
9. Lack of supply of raw materials, the average Sri Lankan dairy farmer owns
two to three cows, with milk production used to supplement main incomes
10. Quality of incoming raw materials (Milk)
11. Affordability and storage limitations
12. Dairy production also makes poor economic sense to local farmers
13. Opportunities
14. As the local dairy industry has failed to keep up with a growing population
of 19.5 million in early 90s, the Dairy market was opened for new
entrepreneurs to start up new business.
15. World Health Organization recommends around two glasses of milk each
day, which equals to 146 liters per capita annually and the Sri Lankan per
capita milk consumption falls below to 25 liters per year in 21st century.
16. Growth in high nutritional foods and high medicinal valued food demand.
17. Wide knowledge of people about getting healthy foods was increased and
they used to add natural, neutrinos products to their meals which is well
packed and can be used instantly. Also milk is fulfilling the above consumer
demand by providing protection to the human body against different
diseases.
18. Milk provides the best favorable media for microbial growth, greater care
should be provided throughout the manufacturing process of these products
19. Threats
20. Strong Competitors in the market such as Newdale, Highland and Kothmale
21. Potential health issues
22. Major prolonged economic depression

INDUSTRY ANALYSIS - PORTERS 5 FORCES

23. Competitive rivalry within an industry
Medium
It is important to know the organisations direct competitors. If there are more
competitors and competitors deliver similarly attractive products, then the
organisation most likely to have a very little power in the industry. As far as
Lucky is concerned there are three direct competitors such as Newdale,
Highland and Kothmale. However generally there is a stiff competition in the
industry. If customers or suppliers dont get a good deal they would go
elsewhere and get a better deal.
Based on a number of information sources, including those reported above, a
dairy market channel flow
diagram was constructed for the Sri Lankan dairy sector (Figure 9) The RRA
Survey indicates that milk
producers retain about 15% of their production for family consumption, the
remaining is sold locally or
to the collection centres, mainly to Milco/Kiriya and Nestle. Thus, 52% of the
marketed milk is
eventually formally processed, before reaching the consumer in liquid or other
product form.
Significantly, however, approximately 34% of the marketed milk is not
formally processed, and is Economics and markets
Appraisal of the Sri Lanka Dairy Sector: Synthesis Report 24
marketed either raw or as indigenous products such as locally-produced curd.
While this informal or
unregulated market is small in comparison to most developing nations, such as
in India where it is
estimated to comprise 85% of milk production (Dairy India, 1997), it remains
significant.

Total dairy imports in 1997, on liquid milk equivalent basis, were estimated to
represent 43% of all milk
available (including producer home consumption), and were an addition to the
milk available of 85% of
domestic milk production. Imports represent 69% of the formal, processed milk
market8 and 50% of the
overall market. Figure 10 below shows market share in terms the overall
market, all marketed milk and
dairy products available, not including home consumption. In those terms, local
or informal share of the
market is clearly significant as the largest single domestic share of the market.

24. Bargaining power of suppliers High
25. The bargaining power of suppliers is high as there are selective suppliers
who have the quality standards that the organisation expects. Also the raw
materials (milk) are purchased by a few selected suppliers. The cost of
switching from one to another would come in to effect in the longer term
run if there are complaints with other supplier products.
26. Bargaining power of customers - High
27. The bargaining power of the customers stays at high level, since there are
relatively higher branded quality products available in the market.
28. Threats of new entrance High
29. Significant barriers to entry in to market is due to the bargaining power of
supplier being high, also this involve a high investment in industry so that it
would not be an easy task to enter into the market.
30. Threats of substitutes Medium
31. This lies at a medium level as there are few quality brands dairy products are
available, although substitution is easy and viable in the industry.
32. MARKETING OBJECTIVES
33. The marketing objective of Lucky is to cover the entire Sri Lankan
provinces by year 2015. The main objective is to capture the markets in
North, East, and coconut triangle cities like Gampaha, Kurunagala and
Putthlam. Therefore, they are planning to build the next factory in North
Central (Anuradhapura). The main reason behind this is that the climate and
other environment evidence which really suites for dairy market. Milk is
produced in all districts of the country, with the lowest being in the conflict-
affected Northern districts. According to the 2002 Census of Agriculture,
the largest cattle populations are reported from the dry and in the
intermediate zones. The wet mid - and up-country areas are often perceived
as the main dairy producing areas of Sri Lanka. The dry and dry
intermediate zones produce 50% more milk than the wet and wet
intermediate zones.
34.
35. Lucky aim to start up distribution centers in all districts and indirectly this
will support the Sri Lankan. And also, Lucky want to be market oriented
considering product, price, place and promotion. In order to achieve 30% of
market share they will keep the unit sale volume of LKR 20. Lucky aim to
organize awareness programs for farmers to increase the effective cattle
base.
36. http://www.smiletemplates.com/screenshots/5/02485/w/b1.jpg
37. Specific: The specific marketing objectives are to reach out to potential
markets as accurately as possible and use minimum time.
38. Measurable: They intend to achieve the measurable objectives in terms of
the sales revenue earned soon after the launch.
39. Achievable: The fixed cost must be covered by effective use of marketing
skills to maximize sales and profits.
40. Relevant: Fits if perfectly with the marketing objectives of Lucky.
41. Time: Objectives need to be achieved within three years after the launch of
new factory.
42. MARKETING ORIENTATION
43. The concept of the production is to increase the production of the dairy
products and to reduce cost. The product concept focuses on making
superior products and improves them over the time period adding more
quality and innovative features. Generally selling concept gives high
attention to the market place and marketing concept looking at the
marketing process in a holistic manner. The final outcome would be to
achieve profits through customer satisfaction.
44. 6.1 LUCKY ORIENTATION
45. Lucky is basically a sale oriented organisation. They mainly consider about
high quality and high price. Therefore the organization must undertake an
aggressive selling and promotion efforts. The purpose of marketing is to sell
more objects to more consumers more often for added money in order to
make more profit. They are able to sell 200,000 yoghurt per day and their
daily income comes around LKR 5,000,000.
46. Figure - Market Share of Dairy Industry
47. MARKETING STRATEGIES
48. Current marketing strategies of Lucky is to motivate both sales
representatives and consumers, therefore, Lucky use push and pull strategy.
According to Albaum et al (2006), Pull strategy is pre-selling the product so
that buyers seek it out or ask for it at the point of purchase. Push strategy is
working with resellers or assisting them is selling the product at the point of
sales. Lucky uses push strategies for sales representatives by providing them
with commissions, foreign tours and selling targets. They use pull strategy
for consumers by providing reasonable price, high quality and different
flavors.
49. TARGET MARKET
50. Sri Lankan target market for dairy industry consists of lower income, middle
income, upper middle and upper class comsumers. Lucky market their
products especially for the middle Income level and lower middle income.
Their segmentation approach will be general strategy, although mass
marketing creates low costs, high volumes and margins. Segment Marketing
will create a finer tuned product offering and price for the target segment.
51. Target Market can be further separate out on basis of Demographist,
Geographic, Psychographic, and Behavioral Characteristics.
52. MARKET SEGMENTATION
53. Market segmentation is to understand the customers, provide them with
what they exactly want, build strong relationship with them and
communicate through highly targeted promotions.
54. Chocolate Yoghurt
55. No Sugar Chocolate
56. Geographic
57. Urban, sub urban and rural
58.
59. Region: Entire country
60. Urban, sub urban and rural
61. Region: Entire country
62. Demographist
63. Age:5+
64. Gender: Male/Female
65. Income: Over LKR 10000
66. Occupation: Employees and non employees
67. Social Class: Lower income, Middle income, Upper middle and upper class
68. Age:35+
69. Gender: Male/Female
70. Income: Over LKR 10000
71. Occupation: Employees and non employees
72. Social Class: Lower income, Middle income, Upper middle and upper class
73. Psychographic
74. Life Style: Outdoor
75. Personality: Ambitions/ comparative
76. Life Style: Health conscious
77. Personality: Ambitions/ comparative
78. Behavioral
79. Emotional / functional
80. Emotional / functional
81. Current segmented market of Lucky Lanka Milk Processing Company is
lower income, middle income, upper middle, upper class families and
individuals. These products have selected to market its products
demographic attributes of the target market. Demographic segmentation
consists of dividing the market into groups on the basis of variables such as
age, gender, family size, family life cycle, income, occupation, education,
religion, race and nationality. Demographic segmentation variables are
amongst the most popular bases for segmenting a customer group as it is
easier to measure customer needs and wants and usage rates. The product
and brand preference are often associated with demographic variables.
Relating demographic segmentation to Lucky product distribution takes into
consideration facts such as age groups, income as well as the social class of
the consumer.
82. POSITIONING
83. According to Kotler (2000), positioning as the act of designing the
companys offer so that it couples as distinct and valued place in the target
customers mind. Therefore, positioning is the act of designing the
companys offering and image to occupy a distinctive place in the minds of
the target market. Positioning leads to successful creation of a customer
focused value proposition a cogent reason as to why the product should be
bought by the customer. Lucky position their products as innovative,
environment friendly and elegant products with brand offering.
84. PRODUCT MIX FOR LUCKY
85. Product
86. The high quality milk is selected for production, in compliance with all
applicable law and regulations. Lucky products are made with pasteurized,
organic skimmed milk, live active Bulgaricus, and Thermophilus cultures
like yoghurt cultures.
87. 7.2 Price
88. There can be many factors that have to be considered when pricing a
product. Relating factors to the product and taking into consideration the
raw materials, labour, rent and technological costs incurred in
manufacturing, Lucky yoghurt the pricing will be done accordingly. The
products quality and the service also have to be absorbed when giving a
branded product.
89. 7.2 Promotion
90. As the most important factor, the promotional method used to create
awareness among customer base is by media advertisements, display boards
and annual food exhibitions.
91. 7.4 Place
92. Their products are available in their own outlets, super markets and other
grocery shops.
93. (Please refer appendix II )
94. RECOMMENDATION AND CONCLUSION
95. The strategic plan defines Luckys over all mission and objectives. Within
each business unit, marketing plays a role in helping to accomplish the
overall objectives. Target consumers stand in the middle and goal is to build
strong profitable connections with the consumers. Lucky, first identify the
total market, divides it in to smaller segments, select the most promising
segments and focuses on serving and satisfying these segments. It designs a
marketing mix made up of factors under to control product, price, place and
promotions. To find the best marketing mix, and put into action, Lucky
engages in marketing analysis, planning, implementation and control.
Through these activities, Lucky should watch and adapt to the marketing
environment.
96. Lucky must analysis its markets and marketing environment to find
attractive opportunities and to avoid environment threats. It must analysis
strengths and weaknesses as well as current and possible marketing actions
to determine which opportunities it can best pursue. Chocolate and vanilla
yogurts are in good demand while others are less preferred. Can we
popularize new brands, like Kithul? (Please refer Appendix III, IV) As
marketers we must continually plan our analysis, implementation and
control activities. (Please refer Appendix V)
97. Lucky marketing strategies consist of specific strategies for target markets,
positioning, the marketing mix and marketing expenditure levels. Marketing
implementation is process that turns marketing plans into marketing actions
in order to accomplish strategic marketing objectives such as reaching the
target sales of each kind of yogurts in different districts. Implementation
involves day to day, mouth to mouth activities that effectively put the
marketing plan to work.
98. Employees of Lucky must work together to implement marketing plans and
strategies. Marketing managers make decisions about target segments,
branding, packaging, pricing, promoting and distributing Lucky products.
99. Successful marketing implementation depends on how well Lucky blends its
people, organizational structure, decisions and rewards systems and
company culture into a cohesive action programs that supports its strategies.
Therefore, Lucky employees must needed skills, innovations, motivation
and personal characteristics. Lucky, formal organization structure plays an
important role in implementing marketing strategy, so do its decision and
reward systems.
100. Finally, to be successfully implemented, Luckys marketing strategies
must fit with its organization culture, the system of values and beliefs shared
by people in the organization. For Lucky to be successful employees must
share such a strong vision that they know in their hearts whats right for
their company.
101.

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