New product Launch ( RTD Malted Drink)

Why New Product

…………………………………………………………

…………………..

Enhancement of Life style in par with economic development.

Changing in life style make people more Mobile and busier than

before.

Busy life style make the time more and more Valuable than ever

people wants to spend their time in more productive manner than

spending on basic stuffs

Though food is basic need it very essential to have Organic, Healthy

and energy meal for people to cope up with their day to day hectic

life style

Why New Product

New Product Launch

Problem Solution

Busy Quick – (1)

Healthy Fresh Milk – (2)

Energy Malta – (3)

Vitamins Banana Extracts –(4)

Availability Brand

(1) +(2) Rich life, Kotmale

(1)+(3) Milo

(3) Viva,Nestomalt & Horlics

People’s Real Need is (1) +(2)+(3)+(4) = ?

Why New Product ( Cont,,,)Unfilled Need

New Product Launch

In the Modern Era, in busy Life Style PEOPLE Value

TIME Value < = BENEFIT

NOT

PRICE Value < = BENEFIT

Fit for Purpose Product to busy life style people, should

be Quick, Healthier and energy provider in a most

convenience manner. Other word,

“QUICK AND COMPLETE”

Why New Product ( Cont,,,)New Equation

New Product Launch

Response to the market Need

Product - NPD

Response to the market needProduct - NPD

Major steps in new product development (NPD) process

IdeaGeneration

IdeaScreening

ConceptDevelopmentand Testing

MarketingStrategy

BusinessAnalysis

ProductDevelopment

TestMarketing

Commercialisation

New Product Launch

An Offer answering the questions of

is it Convenience( Quick)

it is Healthier

is it Energetic

An Idea Screened and Developed a Product with

Fresh Milk for healthy,

Malta and Banana Extract for Energy (high Calcium)

and it is in the form of Ready to Drink Pack.

Quickly consumable and complete in energy, healthy and

vitamins it is “Quick and Complete”


Product - NPD


New Product Launch


Product - NPD


Ingredients(Each 100ml contains)

Energy 366KCal

Protein 20g

Fat 6.4g

Carbohydrate 57g

Vitamin Minerals

A 928IU Iron 3mg

E 11mg Zinc 5.3mg

B Complex 1.5mg Ca 65mg

C 70mg Na 20.5mg

New Product Launch

Response to the markMarket Research

Market description

Sri Lanka is a country of about 22 million people.

The total market size of 200ml Tetra Pack RDT is 1.5Million

litres a month

Continuously growing market.

nowadays very much concerned about the market and product

conditions.

So we have a growing prospect of customers of “Maltinex”.

Quick & Complete

Response to the markMarket ResearchCustomer analysis

Two major target markets for ready-to-drink Milk.

consumers on the go. employees, students

consumers who lead a busy lifestyle.

The hectic Urban and Sub urban lifestyle demands for optimize

productivity with lesser time consumption.

need for products that are accessible and readily available.

Convenience has dominated the market, particularly the food and

beverage industry.

New Product LaunchQuick & Complete

Response to the markMarket ResearchCustomer analysis (Cont,,)

The benefits of Fresh Milk drinking have stirred an interest in

Milk drinking.

Maltinex- Malted Milk poised to improve its customer base

through a joint agreement with Cargill’s ltd

Consumers believe that Fresh milk is very good for the body

while acquiring fair amount of energy need

The other group is made up of health conscious consumers,

specifically the baby boomers who patronize anything healthy.


Response to the markMarket Segmentation and TargetingSegmentation

Geographic

Western, Central, North western, Sabaragamuwa, East, North and

Southern Provinces

Behavioural

Busy Life style people

Health conscious

Sophisticated who take the new product from the market

Demographics

Executives

Individuals

Family

Sportsman

Business buyer

Psycho graphics

Higher class

Higher mid class

Middle class


Response to the markMarket Segmentation and TargetingTM - Strategy

Consumer Market

• Ages 16-35

• Young urban professionals

• Health conscious people,

• Sportsmen

• Busy life style people.

• Average income ~ Rs. 25,000


Response to the markBranding Branding Strategy

A strong brand strategy

can increase the awareness of a company and its offerings

Establishes strong feelings and reactions

Favourable view towards the company as a whole.

A meaningful brand strategy guide the firm forward in a

unified direction

Will help to understand how best to position the brand within

the marketplace, and leverage it for success.

Successfully out-branding our competitors


Response to the markBranding Branding Strategy Process


Response to the markBranding Branding Strategy Process

A good brand should answer What does our brand promise?

Maltinex Promises “Quick and Complete” Meal Essentials.

Is our promise golden?

Maltinex Promises Energy from Natural Sources in a most convenient

manner (Fresh milk with Malta and Banana extract)

Is the promise is unexpected, but welcome?

Maltinex Provide Chance to our customer to drink Fresh milk with banana

Extract and Malta instead of Powdered Malted Milk

Is hearts and minds first, wallets later?

Fresh Milk Banana is not only energy and healthy but RM Sourcing

enhance life standard of innocent the Local farmers


Response to the markPositioning Positioning Strategy

Positioning - Way consumers perceive the brand relative to others.

Positioning - Combination of sensory, rational, and emotional

benefits offered by the brand.

Value-added positioning requires four ingredients.

Simplicity - Making our positioning understandable.

Specificity - Relating the brand to the specific needs of the

target customer with specific benefits

Durability - Positioning strategy with staying power,-

addressing long-term consumer trends

Advertise ability - Strategy must lend itself to a number of different

executions that can be communicated effectively

via different media.


Response to the markPositioning

Maltinex Positioning Strategy

Positioning - As the only Malted Fresh milk with

banana extract in the market

Positioning - Sensory - Tastier (Malta +

Banana + Milk)

Rational - Natural Energy and

Healthy

Emotional - RM sources are from

local farmer

Benefits - Quick and Complete

meal



Maltinex Positioning Strategy ( Cont,,)

Value-added positioning

This product is simply a malted fresh milk with high vitamins

and minerals( Simplicity), addressing the young executives

and busy life style people’s energy need in healthy manner

(Specificity), consuming Fresh Milk perceived as a healthy

practice can help to build a long term Trend (Durability) and

can be communicated via all the communication channels

(Advertise ability )



Maltinex Positioning Strategy ( Cont,,)


Response to the markSWOT analysisInternal

Strengths:

1. Available input materials

2. Low production cost

3. Technological and marketing knowledge

4. Strong distribution channel

5. Easy manufacturing process

6. Reasonable price

Weaknesses:

1. It is easy to copy the idea by others

2. Fresh Milk cannot be preserved for longer period


Response to the markSWOT analysisExternal

Opportunities:

1. Monopoly market

2. Large market

3. High demand

4. Might have a chance to get subsidies by Govt. to export

Threats:

1. High competition in future by copying the idea

2. Entrance of new product

3. Alternatives are avoidable in some segment

4. Uncertainty of launching a new product.


Response to the markCompetitive analysis

Nestamolt Viva Horlicks Milo Daily Rich Life Kotmale

68%

25%

6%

1%0% 0% 0%

67%

27%

5%2%

Market Share

Powder RTD


Response to the markMarketing Strategy

With the expected growth of the billion Rupees

ready-to-drink Malted milk market, Maltinex is

poised to capture a bigger share of the market with

an aggressive marketing strategy.



Vision

Becoming Sri Lanka’s Number One ready -to-drink Malted

Milk by providing Organic, healthy and nutritious Product as

a responsible organization towards the Society. Ultimately

setting ground for healthy NATION

Mission

Capture market presence by 5% in the first year, Second

year by 10% and end of five years time Maltinex should be

able to cater more than 50% of the Malted Milk Market



Objectives:

take the National lead in ready -to-drink Malted Milk

category

Uses positive press on the Health and energy benefits of fresh

Milk to boost the sales of its product line.

The company can use recent studies on the health benefits of

Fresh milk as the basis of its press releases and advertising



Strategies against competitors

Provide best service to create high customer satisfaction

Reasonable and acceptable pricing

Promising and providing top quality product

Launching highly effective mass promotional activities

Continuous innovation and modification of the products

Creating and maintaining long term customer relationship

Creating “Brand Loyalty” among the target consumers


Response to the markMarketing Plan

Pricing Strategy

Differential strategy as the product which is perceived as unique

within a particular market

Pricing objectives

Determining Demand

Estimating costs

Types of cost and

Level of production

Competitor’s (Tetra Pack) prices:

Milo 180ml - Rs. 40.00

Milk Shake 180 ml- Rs. 40.00

Daily 200ml - Rs. 40.00

Rich life 200 ml- Rs. 40.00

Kotmale Chox 180 ml- Rs. 40.00

Target costing pricing

method


Response to the markMarketing PlanPromotional Strategies

To acquire a strong position in the market

Need to give special emphasis on effective promotional

activities.

Use all four tools of marketing promotion.

Advertising through mass media will support a lot.


Response to the markMarketing PlanAdvertise

Brand should clearly specify the product category

Demonstrate how the product differ from competitor and

benefits for consumers

Have to show what are our promises to the consumers

(quick & complete)

For the initial stage will stick to below the line advertising

activities


Response to the markMarketing PlanAdvertise - Integrated Marketing Communication

IMC

Consistent communications of information using channels

include salespeople, advertising, public relations, sales

promotions and publicity.

Benefits

integrated marketing approach assure that the right target

market is reached at the right time through the right

channels with the correct message.

Critical Success Factors

Correctly identify market segments

Right target Markets and position


Response to the markMarketing PlanSales Promotion

New Product Launch

Provide short term incentives to

Consumers

traders

To encourage to purchase or trail the product at initial stage.

Pull Strategy –Consumer Promotion

Give free samples (supermarkets ,Sports events)

Price offs

Special offers –buy 2 and get 1 free

Quick & Complete

Response to the markMarketing PlanSales Promotion

New Product Launch

Push Strategy -Trade Promotion

1. Quantity discounts up to 15%

2. Display Racks

3. Offer shop salesmen Incentives

4. Branded T-shirts, Caps for shop sales people

Quick & Complete

Response to the markMarketing PlanAdvertise - Integrated Marketing Communication

Major Advertising Decisions

Objectives, typically stated in terms of awareness and trial levels

What we will say about the brand, that is, our creative or copy

strategy

How much we plan to spend, that is, our budget

Which media and vehicles to be used to reach the target customers

How expenditures will be allocated to different geographic areas

How the messages will be scheduled over the introductory

campaign


Response to the markMarketing PlanAdvertise objectives

Informative advertising specific communication task to be

accomplished with a specific target audience at a specific period of time.

Primary purpose is to inform and build primary demand.

Objective

First 12 Week Make awareness about the product

Capture 5% of RTD market in first year and 10% market share by

second

year with sales volume of 400000 Packs/Month on the first year

Reach 65% of our target audience by Mostly TV and News papers

and hoardings


Response to the markMarketing PlanMedial Plan

In order to achieve above objective we will stick to clearly define

plan which will shows the

Channels & Paper having higher viewer rate particular segment

Channels and News Papers having less comparative ratio

Airing appropriate programmed to reach target audience

Number of frequencies of an add

Suitable Places for placing hoarding

Budgeting for each elements of activity

Measuring Criteria for each activity





New Product Launch

Channel Selection

TV – Rupavahini, ITN, Swarnawahini, Sirasa, MTV, CSN,

Shakthi TV

Radio –SLBC, Sirasa FM, Shree FM, Hiru FM, Y FM, YES

FM, Derana FM, E FM ,Shakthi FM ,Gold FM and Lite FM

News Papers –Lankadeepa, Rivira, Lakbima, Divaina (Sunday

& Daily), Daily News. Daily Mirror, the Nation, Sunday

Observer, Sunday Times, Tharunaya

Quick & Complete

Response to the markDistribution ChannelDistribution strategy

Maltinex Positioned as premium product hence concentrating

exclusive channels.

Adopted Stage-2 & 3 Distribution strategy

Short Term (In first 6 Month)

GT - 15000 Outlets

MT - 608 Outlets

FS - 1975 Outlets

Long Term (Within 2 Years)

GT - 50000 Outlets

MT - All available

FS - All available



New Product Launch

GT - DISTRIBUTION MAP

Quick & Complete


New Product Launch

Main Towns of each Territories

Western Province

Central 1 - Kandy,

Matale,

Gampola

Central 2 - Gampaha,

Nittabuwa

North - Wauniya, Jaffna

North Central - A’ Pura, Puttlam

North Western - Dambulla,

Kurunegala

Kegalle

North East - Polonnaruwa,

Trinco

Hill Country - Nuwara Eliya,

Hatton

South - Galle, Matara,

Hambantota

Sabaragamuwa - R’pura, Awissawella

Quick & Complete


New Product Launch

MODERN TRADE COVERAGE

Quick & Complete


New Product Launch

Hotels

Take away Outlets

Eating Places

Bakeries

Hotel Suppliers

Restaurants

Cinemas

FOOD SERVICE COVERAGE

Quick & Complete

Response to the markDistribution ChannelIntegration - Contractual VMS

Cardill’s Ltd.

Benefits of strategic Distribution Partnership agreement with

Cargill's ltd in return to Purchase of RM

Maltinex gain higher visibility with less Cost on the

Cargill's Outlets

Reduce Distribution Cost as Cargill's operate in centralize

Distribution Model

Negate a Possible threat of Substitute Product to Maltinex

form Cargill's,


Response to the markDistribution ChannelIntegration - Contractual VMS

EAP Cinemas

Maltinex gain exclusivity in 56 leading Cinema halls in main

towns and avoid competitors.

P & S and Other Eating Outlets

Maltinex gain exclusivity in those outlets and avoid competitors.

Indirectly induced consumers to buy Maltinex


Response to the markFinancial Analysis

Three major criteria are evaluated.

Projected demand

Profitability

Return on investment

Initial marketing expenditures to build awareness and trial were

extremely high.

Companies with deep pockets and many successful brands at

different stages of the life cycle can sustain new products and

long-term viability and profitability.


Response to the markFinancial Analysis Costing

Our Price (MRP)

200ml - Rs. 50.00

Trade Margins

GT

Retailer 12.00% - Rs. 6.00

ND 5% (from Trade Price) - Rs. 2.20

Rs.41.80

NBT 2% - Rs.00.84

Rs.40.94

Transfer Price (From Factory) - Rs.30.44

Selling & Distribution OH -Rs. 5.00

Total Cost - Rs.35.44

GP (Rs) - Rs 6.50

GP % - 18.37%


Response to the markFinancial Analysis Sales Forecasting

Expected Sales(Per

year)200 ml. Bottle

First Year 4000000

Second Year 4500000

Third Year 5500000

Fourth Year 6000000

Fifth Year 8000000

expected sales and growth for the coming five years:


Response to the markFinancial Analysis Profit and Loss Projection

Item Year 1 Year 2 Year 3 Year 4 Year 5

Total Sales 200,000,000.00 225,000,000.00 275,000,000.00 300,000,000.00

400,000,000.00

Total Cost(-) 141,760,000.00 159,480,000.00 194,920,000.00 212,640,000.00 283,520,000.00

Total Profit 58,240,000.00 65,520,000.00 80,080,000.00 87,360,000.00 116,480,000.00

Discount + Tax(-) 32,000,000.00 36,000,000.00 44,000,000.00 48,000,000.00 64,000,000.00

Promotional(-) 25,000,000.00 22,000,000.00 25,000,000.00 25,000,000.00 25,000,000.00

Net Profit 1,240,000.00 29,520,000.00 36,080,000.00 39,360,000.00

52,480,000.00


Response to the markActions, measurement and controls Action plan

3 Ws for the Launching of Maltinex

what ( Activity) Who When Priority Results

Product Development R & D team April High OK

Pricing Finance Team May Medium OK

Budgeting Finance Team May High OK

Packaging Finalize Marketing Team June Medium OK

Finalize Marketing Paln Marketing Team July High OK

Test Market Sales & Marketing Team August Medium to be Done

Complete Test Evaluation

Marketing + Finacnce

Team October Low to be Done

Product Launch Whole Team November Medium to be Done

Promotional Activity Marketing Septembr High to be Done

Post Product Launch

Evaluation

Marketing + Finacnce

Team February Medium to be Done


Response to the markActions, measurement and controls Measurement and controls

The balanced scorecard approach for monitoring company

performance

The scorecard is a "strategic planning and management system

monitoring overall performance and ensuring daily work is

focused on the strategic objectives.

used to align business activities to the vision and strategy of the

organization, improve internal and external communications,

and monitor organization performance against strategic goals".


Response to the markActions, measurement and controls Measurement and controls

scorecard system views the business from four external perspectives

to gain a more relevant approach to performance metrics

Learning & growth – how we are innovating and improving

to meet our goals

Business process – how critical processes are measuring up

Customer perspective – usually measured in terms of time,

quality, performance and cost

Financial perspective – financial performance from the

stakeholder point of view


Response to the markActions, measurement and controls Key performance indicators (KPIs)

Market share analysis

Sales analysis

Financial results

Market research

Marketing information

systems

For Maltinex, below metrics which determine succes

CRM - New customers

acquired retention

Brand awareness

Competitor performance

Profitability


Response to the markFinal words

Marketing planning process is a comprehensive

method for examining the business, market and

the environment in order to develop a strategy

to exploit opportunities. This is a vital process

which should be used by almost every company

to ensure a profitable and sustainable future.


Response to the mark“MALTINEX” Delivered it’s PROMISE

QUICK and COMPLEYE

Possible

BCose,,,,,,,

Maltinex

TIME Value

< =

BENEFIT