The Marketing Proposal For Baby Food Marketing Essay

Our company is engaging in food industry for many years, especially for baby food. This year, our company decides to re-launch a “new, improved” of milk powder for baby eating. Before re-launching into the market, it is necessary to build a marketing proposal. The purpose of this report is to define the target market for new milk powder and marketing mix strategies. Initially, it will introduce the milk powder in which aspects are improved than the previous. Following it, it will define the target market segment for the product. Next, it will discuss the packaging, promotional theme, pricing and distribution strategy respectively. Finally, it will give some recommendation and conclusion for the report.

Table of Contents

Introduction

The new milk powder adds lutein, which will be beneficial for sight growth. This new milk powder has only balance proportion between DHA and AA. In meanwhile, it adds Taurine and improves choline and iron materials, which strengthens the brain growth. Compared with previous milk powder, new product adopts high-quality Alpha whey protein and strengthen Vitamin D. New milk powder adds special Beta Carotene, which will promote the healthy growth of bone and brain. As a result, new milk powder contains abundant nutrition that babies need, including Omega 3, DHA, AA, nucleotide, etc. Of these nutritious materials, nucleotide can prevent the sickness and improve the immunity of babies. Improving babies’ immunity is the best method to confront the sickness. Absorbing enough nucleotide can make white blood cell. It will not only reduce rheum and diarrhea, but also decrease the opportunities of suffering meningitis. New milk powder pays more attention to the safety and does not adopt any materials with additions. Therefore, new milk powder sets serious checking procedure step by step to ensure the safety.

Target Market Segment

It is critical to evaluate each market segment’s attractiveness and select one or more segments to enter (Kotler, Brown, Adam, Burton & Armstrong, 2007). Target market segment is to analyze target customers’ characteristic and evaluate customer values based on information collection in order to make relevant marketing strategies and resource allocation plan (McKenzie, 2010).The following will analyze the target market from three aspects, including geographical aspect, demographic aspect and psychological aspect.

Geographical:

This new milk powder will be re-launched in Australian market. Initial cities will be Sydney, Melbourne and Brisbane. These three cities own large populations in Australia. As our company’s new milk powder is proper for babies, it will be launched in areas where more people live in.

Demographic

This new milk powder is just for babies. However, it is not suitable for any phase’s babies. As a consequence, babies between six months and one year old will be proper target group. But babies are too youth that they cannot purchase by themselves. Their parents will be direct customers to purchase.

Psychological

Different people have different psychological behavior. Most parents would like purchase new milk powder from famous brands because they trust it will be safety. At the same time, they also consider the price factors that they can accept. Therefore, new milk powder targets the groups that value price and attach more importance to the quality.

Package Design

Before customers purchase the products, they are usually attracted by the package design. The out package of milk powder is cylindrical cans. The main color of out package is pink because it can express warm and kind feeling. On the out package, it should obviously demonstrate the information label. Brand and logo of milk powder should be shown on the cylindrical cans. Brand and logo must can well combine its product features and local customers’ tastes. Information label will be divided into three forums, including front and two sides. In the front, it demonstrates the name, types and scales of milk powders. In the two sides, it will show nutrition ingredient, instructions, manufacture information, etc. The image on cylindrical cans will be smiling babies. It means that if babies ear this new milk powder, they can grow in healthy.

4.0 Promotional Messages and Themes

Each promotion will have the messages and themes. The message and theme of new milk powder is to ensure babies grow in healthy. Therefore, it is necessary for the company to publicize healthy knowledge of babies and how to eat milk powder every day. Promotion messages and themes can be discussed from two aspects:

On one hand, the company should publicize the importance of milk powder and which nutrition babies need in the growth phase. Then the parents can have a correct recognition about the nutrition that their babies must supply in the growth process. All the information that the company provides to the customers must have scientific evidence. The safety of babies food are more concerned by parents, so the company would better provide safety certificate to customers. Any exaggeration and cheat are forbidden because it will leave a bad reputation for the company, which will not be beneficial for future development.

On the other hand, in the promotion phase, the company should clearly deliver the features and eating methods of new milk powder. It is known that there are many types of milk powder in the market, so the company should highlight their unique features that other companies do not have. For example, the new milk powder takes only balance proportion between DHA and AA (1:1 or 1:2). Unique features are key points that customers decide to purchase when they have multiple choices. At the same time, the company needs to teach parents how to brew the milk powder in right method. Sometimes, parents are easy to neglect the specific aspects. For example, parents must wash hands before brewing the milk powder and disinfect breastfeeding appliances. As a consequence, the company must publicize effective knowledge to customers.

Since new milk powder is re-launched in the Australian market, effective promotion strategies are very useful for its fast expansion in market share. Since milk powder market in Australia is very fierce, the company must adopt all kinds of promotional strategies to achieve good results. The first factor is to adopt advertisements. According to research, the most three popular advertisement methods are TV, magazine and internet in Australia (Chitty, Barker & Valos, 2011); so the company needs to invest a lot of money in making advertisements. Also, the content of advertisement must be well designed in order to araise customers’ attentions. Secondly, the company can promote its milk powder through sponsorship. In Australia, people like sports very much; so it is very effective to sponsor some local sports meeting or other public activies. Third, sales promotion is also very useful. The company can use coupons, discounts and loyalty incentives to attract more customers.

5.0 Pricing Objectives and Strategies

The pricing strategy also has the objectives aiming at business increase for its new milk powder in Australian market during the next whole year. First is to get 7% market share in Australian milk powder market; second is to achieve 300,000 USD net profits; third is to get a 96% customer satisfaction.

In general, pricing strategies include cost–driven pricing strategy, competition–driven strategy and customer–driven strategy, and application of different pricing strategies mainly depend on the company’s internal and external situations(Williams, 2012). For the new milk powder, it is advisable to adopt competition–driven strategy as the main strategy with certain consideration of customer–driven strategy. There are mainly three reasons. First, currently the company is mature and it has enough funds, and its main aim is to successfully lead in Australian milk powder market, so cost–saving is not the main purpose in the beginning; second, competition level is very high in Australian market so the company must adopt competition–driven strategy in order to compete with other rivals; third, because of the impacts of economic crisis, more customers pay attention to cost performance of products, so customer–driven strategy should also be taken into account after the company has taken large market share.

6.0 Distribution strategy

The company needs to establish its distribution channel. As a manufacturing company, the distribution channel will be “manufacturer–agent–retailer–customer” (Fahy &Jobber, 2012). It is not realistic if customers purchase milk powder directly from factory. Considering the high cost of direct investment in Australia, it it still advisable for the company to adopt this indirect distribution channel, because the mature distribution channel is easy to control. At the same time, the company can reduce the costs and also transform the sales pressure to the agents or retailers.

Conclusion

In conclusion, this report gave a marketing strategy for the company who plans to re-launch a new and improved milk powder in Australian market. In order to enable the company to have an understanding of the marketing situations, it made a target market segnment. Through this report, it is found that marketing activity is very complex with many marketing factors to be considered; it also shows that effective marketing strategies based on correct marketing environment analysis are very necessary.