Dairy

Mundane product costing less than RSI 100/- Product chosen by Consumer: Milk Packets (mall) Consumer Name and Occupation: Mr.. Varian Sings, Business strategist for a NC Consumer age: 27 years Introduction The survey was conducted at Infinity Mall, Andrei with Mr.. Varian Sings who works at a NC as Business Strategist. The product chosen by Varian was 500 ml plastic milk packets as it is an important part of his daily life and routine.

Consumption Experience Varian consumes two milk packets every day one in the morning and another in the evening before he leaves for gym. It is delivered by a shopkeeper directly to his flat and he does not pay anything extra for this service. Also he makes monthly advance payments to the shopkeeper. He believes that drinking milk Is necessary to maintain his health as It contains basic nutrients and has now become a crucial part of his dally routine. He generally consumes milk with cornflakes or oats.

Relationship with product He has been consuming packaged milk since he left his hometown Swallow before which his family used to purchase milk which came directly from the dairy farms to his home. The product has not changed since he started consuming it, all aspects like packaging, quality etc. Have been the same. Only there have been continual increase in prices due to inflation. Things which have gone wrong in the relationship Varian is dependent on this product and also loves it. There have been no issues or difficulties in availing this product but sometimes the service provided by the shopkeeper have not been up to the mark.

There have been cases where the milk packets were stolen from outside his flat and also sometimes the shopkeeper does not deliver It on time. Positive/Negative Surprises There heaven been any case of exceptional service or surprise but a couple of times he was provided with milk packets after their expiry date which is very rare. Satisfaction level of consumer Varian is satisfied with the product since he believes that drinking milk is a necessity since it is good for health and assumes that the quality of the milk available in packets is appropriate.

He does not like to consume milk available in tetra pack containers since he has heard that they contain some preservatives which cause harm to our bodies. Importance of the product in Consumer’s life This product plays a key role in Virus’s life since it is a major part of his everyday breakfast as he consumes milk with cornflakes or oats. Also he believes that drinking milk dally keeps his body In good shape and thus provides a kind of mental satisfaction. Role of brand He personally does not have any brand preference but generally drinks from Maul

Packets since the same is stocked by the shopkeeper near his flat. Conclusion for his health and he has been told that he must drink a glass daily. He did not have any opinion on different brands available in the market and is satisfied with packets delivered to him by from the shop. He only dislikes milk in tetra packaging since he has heard that the preservatives used in them are not good for health. Overtime he has grown used to drinking milk and would feel uncomfortable if the same is not provided to him.

It is a great source of vitamins and nutrients, and it has several health benefits, such as: Glowing Skin, Healthy Bones and Teeth, Muscles, Weight Loss, Less Stress and Healthy Body. Milk has properties that lower high blood pressure and risk of strokes. It reduces the liver’s production of cholesterol, and it can act as an antacid. Vitamins A and B in milk can help build good eyesight. Milk has also been show to help lower risk of certain cancers. Milk has been used for human consumption for thousands of years. Around the world, people drink the milk of any other animals including camels, goats, llamas, reindeer, sheep and water buffalo.

Milk Is available in many varieties. Raw milk has not been pastured, and Is usually available in natural food stores. Our product Is a kind of beverage which is non-alcoholic. We named Melville Shake after the noise and milk off goat which is “meme” and “ilk”. A Melville Shake is a sweet, cold beverage which is usually made from goat milk. Goat milk is as close to a perfect food as possible in nature. Its chemical structure is amazingly similar to mother’s milk. It is a complete protein containing all the essential amino acids without the heavy fat content and catarrh producing materials of cow’s milk.

The highest sources of broaching sodium is found in goat milk and sweet goat whey. One common denominator that Dry. Jensen discovered in his 70 year study of people over the age of 100, In visiting 90 countries, was goat milk. Margaret Patton of London died at 137 years old. Jonathan Hardtop walks 9 miles a day at the age of 136 and lived to be 138. Thomas Parr lived 152 years and Peter Czarina from toys that the only milk referred to in the Bible, as food, is goat milk (Proverbs 27:27). And thou shall have goat’s milk enough for thy food, for the food of thy household, and for the maintenance for thy maidens. We come up on this business plan for the reason that we are been inspired of Met. Carmela who produces one of the best and good quality of fresh goat milk in Kinshasa Bandsman, Dave del Sure. By this, we are confident to present our product to be launch this coming September 2013 at Philippine Women’s College of Dave . We do not have competitors yet here in Dave City. It’s a new product that for sure Database’s would like it. Melville Shake Company is a partnership form of business which is headed by Aria Ellen S. Canyon, Kenneth Kim Q. CERN, Karen Marie G. Guy, Jejunely Kate Muar, Charlene Ann R. Pence, Angelic G. Tao-on and Leading S. Ramose. They are the student of Philippine Women’s College of Dave (PWS) taking up Bachelor of Science Hotel and Restaurant Management (BSRAM). II. Executive Summary Melville Shake Company is a newly product that provide good quality of beverage that gives nutritious and healthy effect towards customers. Also, Melville Shake Company provide different kinds of flavors such as; strawberry, mango, chocolate, cookies & cream, etc. Melville Shake production system strive to attain service excellence in addition to manufacturing safe, quality products.

We come up to this business plan not Just only gaining profit, but also applying our skills based on our courses. Moreover, to give a good service to our beloved customer. This Melville shake product will make the people feel refresh. Melville Shake Company will be launch 1 month from now. It will be located at Philippine Women’s College of Dave (PWS) school canteen. This business plan is a form of partnership organized by Aria Muar, Charlene Ann R. Pence, Angelic G. Tao-on and Leading S. Ramose.  To give the customer a nutritious ; healthy product.

To exceed customer satisfaction.  To retain investment tallest 100% in Just a year. To achieve name recognition in the local community. To achieve a net profit of 30,000 by year two and 50,000 by year three. 6. To have our very own connecting stalls not only in Dave City considering all the place in the Philippines. Slogan/Motto: Taste, how much we care. Boston Is to give our customer a good quality service and a product that will give them a there: mirror first choice for dinning”  To ensure that each guest receives prompt, professional, friendly and courteous service.

Also to assure that every guest who choose our product Melville Shake lives healthier and happy lifestyle. Melville Shake Company is organized as a partnership between seven person, named- Aria Ellen S. Canyon, Kenneth Kim Q. CERN, Karen Marie G. Guy, Jejunely Kate Muar, Charlene Ann R. Pence, Angelic G. Tao-on and Leading S. Ramose. The Melville Shake Company will be located at the Philippine Women’s College of Dave school canteen on September 2013. The hours operation will be 8:AMA – 2:pm. Ill. Production Plan Melville Shake production system strive to attain service excellence in addition to manufacturing safe, quality products. This will be undertaken through the engagement of modern production techniques using up-to-date assembly technology.

We also intend to ensure that the suppliers we engage are committed and reliable so as not to let down our final consumer in terms of the quality of the product and time of delivery. Moreover, Melville Shake production system intent of the Act to encourage the sanitary production of good quality milk, to promote the sanitary processing of milk for manufacturing purposes, and to assure wholesome, stable, and high-quality dairy products. A non-governmental organization based in Kinshasa, a barraging of the municipality of Bandsman, UMBER has been raising and selling goats since the sass.

Anglo Nubian, French Alpine, Seamen, and Toughening. Among these breeds, only Anglo Nubian comes from a tropical climate (particularly Nubian, Africa). Both Seamen and Toughening are natives of Swiss Alps while French Alpine has France as its place of origin. Anglo Nubian is the breed produces less milk than other dairy breeds. The Anglo Nubian goats it produces an average of two liters of milk a day. Also Anglo Nubian goat is the best goat produces a dairy milk product. As we visit the Met. Carmela in Kinshasa, Bandsman, Dave del Sure Apt.

Dalton told us that a goat milk must be done in tube pastries (the main important system in the dairy) to reduced dramatically number of micro organism (pathogens) by the heat treatment. -Get the milk from the goat. Milk Bastardization Once you’ve obtained the goat milk, it’s time to strain it, and optionally, Pasteur it. Straining the milk removes dust particles and other foreign objects that might affect the taste or texture of the milk. If you only rarely need to strain milk, coffee filters will work. Place a basket-type paper fee filter in a permanent mesh coffee filter basket and pour the milk through it.

This can take a while, as you have to wait for the milk to drain through before adding more. If you don’t have a permanent filter basket, you can secure the filter to the bottom of a canning funnel with a large rubber band. More efficient, though more costly, is to purchase a milk strainer specifically made for filtering milk. These are large, funnel-shaped aluminum or stainless steel items that have a disposable filter secured to the bottom with a clamp. The large size allows you to pour a greater annuity of milk at a time, and the filter allows a much quicker rate of flow than coffee filters.

December 4, 2012 Factory Farming With the rising population growth in the United States, food production has greatly changed. Factory farming was developed in the 1920’s; soon after the discovery of vitamins A and D, these vitamins were added to the feed, eliminating the requirement for exercise and sunlight for growth. But what exactly is a factory farm? Factory farming is the dominate source of livestock food for the U. S. Harsh and cruel conditions are inflicted towards the animals which are confined in small cages, the factorys are inhumane and morally wrong.

Simply put, it is a farm that runs like a factory. The dangers of this kind of agribusiness inflict not only the animals but the environment, communities and our health. Should factory farming be banned? The government refers factory farming as; concentrated (or confined) animal feeding operations (CAFOs). So what are the conditions of these ‘concentrated animal feeding operations? These facilities house hundreds or thousands of cows, calves, pigs, chickens, turkeys, ducks, geese, and other animals that live in extremely stressful conditions.

They are confined in small cages, Jam packed in rooms with little to no room to move around or lay down comfortably. They are fed drugs to fatten them faster and keep them alive in conditions that could otherwise kill them. Genetically modified organisms (GMO’s) are used to make the animals grow faster or to produce much more milk or eggs than they naturally would. (Sorensen, 2009) When animals raised for food are large enough for the slaughter houses they are transported in crowded trucks with often no water or food. The animals that survive this grotesque trip are often slaughtered alive.

Practices such as altering animals bodies are common in all factory farms, practices such as; debeaking, A process that nvolves cutting through bone, cartilage and soft tissue with a blade to remove the top half and the bottom third of a chicken’s, turkeys or ducks beak. This measure is taken to reduce the excessive feather pecking and cannibalism seen among stressed, overcrowded birds in factory farms (ASPCA). So why aren’t factory farms banned? There are many reasons as to why these facilities flourish in the United States and other countries. Factory farms are an efficient way to produce food for the large demand of meat, at a low cost.

The large amount of Jobs it entails. They also ensure that huge cities will always have food. Factory farming has also promoted the development of vital amenities like good roads and hospitals among others (Harri). Corporations such as McDonalds and others alike are some of the largest consumers of the factory farming business. Without these farms it would be difficult, or impossible to provide chain restaurants with the amount of meat necessary in order to run efficiently. The people, we nourish this business by our desire for low priced food. Are these advantages actually positive or are we overlooking past the downsides?

The number of factory farms in the U. S. s undefined, but according to the Factory FarmMap. org; in 2007 there were 571 ,210 livestock units in New Mexico. New Mexico nas extreme levels ot dairy tactory farms. One of them being along interstate 10 southeast of Las Cruces, there are 30, 000 dairy cows on 11 back to back dairy farms. How are factory farms dangerous? Factory farms pollute our land, air, and water by the extreme amount of waste generated by the vast amount of animals being raised in one place. Land and water have been poisoned by decades of use of pesticides and synthetic fertilizers for mass production of livestock feed.

According to the New Mexico Environment Department (Burnett, 2009); two thirds of the state’s dairies are contaminating groundwater with excess nitrogen from manure leaking from lagoons or being over applied to fields. Nitrous oxides are being released from farms in large quantities due to manure application and are among the leading causes of acid rain (Grace). Can we ban factory farming? It is irrational to think factory farming can be banned, although changes can be made. We can bring awareness to others about factory farming, and by buying local organic food at either farmers markets, or organic produce stores.

Indian Dairy Sector- Overview & SWOT Posted by admin on Tuesday, July 31, 2012 · Leave a Comment  inShare | Import of key items on the increase to meet shortage| Import of dairy items during April 2009-February 2010 surged by a massive 275. 5 per cent to Rs 284. 88 crore. | | In April 2008-February 2009, import of milk and other dairy products was only Rs 75. 86 crore. | The dairy products imports mainly comprise skimmed milk powder and butter oil brought in by the National Dairy Development Board (NDDB) to meet shortfall in milk procurement of its subsidiary, Mother Dairy, and other co-operatives.

With their procurement lagging behind, liquid milk supplies have been affected in many States. B L 180510| SWOT ANALYSIS OF INDIAN DAIRY INDUSTRY| Strengths:| * Demand profile: Absolutely optimistic. | * Margins: Quite reasonable, even on packed liquid milk. | * Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line. | * Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization. * Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years. | Weaknesses:| * Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life. | Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields. Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved. | Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why can’t we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumer’s home! Competition: With so many newcomers entering this industry, competition is becoming tougher day by day. But then competition has to be faced as a ground reality. The market is large enough for many to carve out their niche. | Opportunities:| “Failure is never final, and success never ending”. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of ‘never ending success’!

If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:| * Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential areas of value addition:| * Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. * Addition of cultured products like yoghurt and cheese lend further strength – both in terms of utilization of resources and presence in the market place. | A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities. | Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals. | Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East.

Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular. | Threats:| Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance. | The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far outweigh ‘weaknesses’ and ‘threats’.

Strengths and opportunities are fundamental and weaknesses and threats are transitory. Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). | The Indian dairy industry, following its delicensing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. |

Are you sure that the last drop of milk your loving child drinks is safe? Do you know what compels you to feed your baby melamine and other contaminated milk?

The huge demand-supply gap makes the milk price high and that creates the chance for low price contaminated milk to enter into Bangladesh market. Another recent agro-problem Bangladesh has faced is huge potato spoilage after having bumper production each year and potato farmers incur huge loss. Poto (country’s first non-dairy milk brand) identifies these top problems as opportunity and combines two solutions into one direction which is producing milk by adding value to the local quality potatoes to introduce non-dairy milk in Bangladesh market as a new offering.

Poto’s product line comprises two basic category of milk which is original & flavoured in three tetra pack size of 250ml, 500ml and 1litre. A new generation of non-dairy beverages has dawned with Poto, a delicious-tasting, fat free, cholesterol free, that can be used just like milk. Potato based Poto is an excellent source of bio available calcium and least allergic of all non-dairy beverages available on today’s world. The total demand of milk is 6,570,000 tonnes (per head 120 ml) and supply is 3,326,000 tonnes including the imported milk (The Independent, 25 December, 2008).

Among the milk producers Milk Vita is the biggest by holding 20% of demand so it grabs almost 40% of total supply. Brac Dairy, Pran, Akij are holding sizeable portion of the market. Poto uses cost leadership and differentiation strategies to gain competitive edge over its competitors. It gets the first mover advantage over all potential non-dairy milk brands. Poto is not only an entrepreneurship venture but also an ecopreneurship endeavor. The production process is eco-friendly because there are no chemical or harmful particles used in the production and the disposal system is safe.

The company also emphasizes safety and hygiene issue of the human resources. The firm has a marketing strategy of positioning its product on the basis of low price and quality. The objective of its marketing campaign is to make people aware about non-dairy milk concept and its benefits over ordinary milks. To reach the segmented portion of buyers in Dhaka Poto uses all the four means of marketing mix and marketing tools like TVC, FM radio ads, newspaper ads, campus campaign, assurance program and 24/7 help desk.

The production of Poto is done in the own operational plant in Sirajganj because the availability of rawmaterials as well as the convenient transport and communication. The operation of Poto consists of three phases— procurement and storage, production and packaging phase. The finished products are distributed by the help of local distributor. The project is associated with risks like demand risk, supply risk, economic risk, political risk etc. which is reflected in the discount rate (20%). The estimated project cost is BDT 8,493,500 in FY 2009-10 which is financed by 69% equity from partners and 31% debt from lenders.

The ratio analysis shows net profit margin of 3%, 16. 8%, 20. 2%, 20. 8% and 21. 2% in FY 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14 respectively. The projected financial statements also portray liquidity and solvency of the firm. The NPV of the project from 5-year financial projection is positive by BDT 13,979,595. The IRR of the project is 52%. The payback period is 2. 10 years and discounted payback period is 2. 54 years. The stress testing shows positive NPV in all the three cases— base (BDT 13,979,595), best (BDT 20,053,800) and worst (BDT 4,275,886).

The social cost-benefit analysis also reveals positive social NPV of BDT 23,024,450 at 25% discount rate and the social IRR of the project is 56%.

BUSINESS IDEA

Poto is the country’s first non-dairy milk brand which produces milk from local quality potatoes. Nondairy milk is a new option for the milk consumers of Bangladesh and it is also an innovative value added product of potato. The milk industry of Bangladesh has encountered problem with contamination of melamine and emulsion due to huge shortage of supply.

Also the potato producers of Bangladesh are facing spoilage problem after having bumper potato production each year and thus incur huge loss. Poto identifies these top problems as opportunity and combines two solutions into one direction which is producing milk from potatoes to introduce non-dairy milk in Bangladesh market as a new offering.

PRODUCT OFFERINGS ?

Poto original— Original non-dairy milk-white. ? Poto flavored— Poto choco milk (Chocolate flavored milk), Poto milk berry (Strawberry flavored milk) and Poto Vanilla (Vanilla flavored milk). Poto markets its products in 3 tetra pack sizes: 250ml, 500ml and 1 Litre.

FEATURES AND UNIQUE SELLING PROPOSITION ?

Potato milk is world’s new non-dairy milk innovation. ? Potato milk is commercially and technically viable non-dairy milk option for Bangladesh which is best taste comparing to soy-milk and rice-milk. ? Cholesterol and lactose free milk which is helpful for lactose intolerant people and also free from dairy allergy ? No artificial sweetener, color and flavor and no animal ingredients, preservative used in Poto. Poto is vegan friendly and Non-GMO (Genetically Modified Organism) product.

BUSINESS MODEL

Poto’s business model is entirely production or manufacturing-based. Poto’s production process transforms and adds value to the quality potatoes and produces non-dairy milk of various flavors. Poto will: ? Produce milk in its own operational plant using eco-friendly production process. ? Sell milk in 3 tetra pack size in the local market. How Poto makes money is shown in the following business model:

GOALS AND OBJECTIVES

Vision

Poto’s vision is to make a safe milk consumption platform to create a healthy nation.

Mission statement

Poto wants to offer non-dairy milk to reduce the demand-supply gap and assists potato producers who have incurred huge loss due to potato deterioration, while it uses the most efficient, state-of-the-art technology in operation. Poto aims at establishing eco-friendly work environment and providing better employee incentives as it continues to expand its business. Short-term goals ? To offer quality products at a competitively lower price to capture market share. To create a demand for non-dairy milk as a best taste option. ? To persuade the target customers regarding the benefits of non-dairy milk that will bring ? familiarity among customers. Long-term goals ? To expand its operation beyond Dhaka in the year 2015 and further goes for export. ? To set up new industrial unit in the west region of Bangladesh by the year 2018. ? To ensure sustainable development of the nation by creating newer utility of quality potatoes.

Objectives

To attain 20% growth rate by the year 2014. ? To attain net profit margin of 25% in year 2017. To achieve BDT 20,000,000 free cash flow by the year 2015 to setup another operational plant by the year 2018. ? To utilize 1200 tonnes of potatoes by the year 2018. ? To repay loans by the year 2020 and lever up the firm with 25% debt by the year 2025.

MARKET POTENTIAL

As there is 49% gap between the demand and supply of milk in Bangladesh this sector needs more supply of milk. The total demand of milk is 6,570,000 tonnes (per head 120 ml) and supply is 3,326,000 tonnes including the imported milk (The Independent, 25 December, 2008).

Whereas the present and projected scenario of Dhaka Metropolitan City estimated by Poto is: Source: Data used from Statistical Pocket Book of Year 2010. Due to milk shortage melamine, emulsion and other contaminated milk are entering into market to fulfill the demand supply gap quickly and people get less option without purchasing those milk. Increasing dairy milk production is not an overnight task because of shortage of livestock and grazing field. So the demand for non-dairy milk will be created in Bangladesh.

Non-dairy milk emergence factors

Non-dairy milk— ? can be introduced to fulfill the demand-supply gap ? is more affordable for greater range of consumers ? can also serve the heart, diabetics and dairy allergic patients which is big portion in the demand but vulnerable to dairy milk ? with different flavors is cheap and better quality than available flavored milk

GROWTH PROSPECT

The milk market growth rate is 20% according to industry analysis (source: The Daily Star;Published On: 8/4/2008). ? “We are happy that private companies are coming up with big plans in this sector.

There is still a huge scope for growth for every player as together we are only catering to one-fifth of the market,” according to Ms Ferdousi Ali, chairman of Milk Vita. ? Milk industry is going to be a thrust sector (The Independent, 25 December, 2008). ? The government is encouraging agro-processed business. According to FAO all over the world value added potato products’ consumption is increasing. The year 2008 was “World Potato Year”. The government observed this year by launching a huge potato campaign. The people have become more interested to consume value added potato products.

So, it is obvious that there is an ample growth prospect of the business.

COMPETITOR ANALYSIS

Poto offers non-dairy milk in Bangladesh market in first phase. The domestic market of non-dairy milk is less competitive but the firm faces huge competition from the existing dairy milk brands which are offering the substitute product. ? Milk Vita is the largest liquid milk processor of Bangladesh. The daily demand of milk is 37. 5 million and the company can meet only 20% of it. So it grabs about 40% of total supply. But the milk collection has fallen some 35% to 55. 3 million litres in FY 2007-08. (source: The Financial Express, Publish date: January 26, 2009) ? Brac Dairy is the second largest liquid milk plant in Bangladesh. The market share of Brac Dairy had increased to 35% from 20% by year 2006 to 2007. (www. ssireview. org/articles/entry/in_the_black_with_brac/) ? Pran-RFL is the third largest liquid milk producer in Bangladesh has a daily processing capacity ? of 1 lakh litres of milk although it only processes 40,000 litres daily due to milk shortage (source:The Daily Star ; Published On: April 4, 2008). Milk price of these competitors lie between BDT 14 to 20 for 250 ml, BDT 26 to 28 for 500 ml and BDT 50 for 1 litre. (see Appendix A6) ? Brac Dairy, Pran-RFL, Akij Foods and Beverage Ltd. use tetra pack for packaging a portion of supplied milk. Pran-RFL and Akij use tetra pack for normal milk and Brac Dairy uses tetra pack for flavored milk.

Competitive forces analysis:

Porter’s five forces analysis has been conducted to evaluate competitive edge of Poto from its existing and potential competitors (see Appendix A12). The analysis shows:

Bargaining power of suppliers (potatoes and other ingredients) is low. ? Bargaining power of buyers is high because the consumers get several options. ? Threat of new entrants domestically is high as the market is quite lucrative and milk demand–supply gap is huge. ? Threat of substitute although very high. ? The intra-industry rivalry is domestically low because the demand is quite high than the supply.

ASSESSMENT

Among the competitors Milk Vita is the biggest by holding 20% of demand so it grabs almost 40% of total supply. Brac Dairy, Pran, Akij are holding sizeable portion of the market.

Poto has competitive edge in price and taste. It gets the first mover advantage over all potential non-dairy milk brands. Besides, competitive analysis reveals the market is lucrative in all terms of forces that indicate opportunity, profitability and sustainability. The competition among competitors is fair because all operate to make Bangladesh milk industry a self sufficient one which is still a gigantic task.

MARKETING PLAN

Marketing goals and objectives:

To meet the growing needs of the target market and to evaluate the competitive environment and continue to establish a differential advantage. To establish an effective and profitable marketing mix of product, place, price and promotion. ? To establish a customer base of 5% of the defined target market within 2015 ? To exceed break-even selling point of 381 tonnes at FY 2009-10

Marketing strategies

Making people aware about non-dairy milk, its nutritious value, taste and benefits. ? Focusing price, taste and unique selling propositions while developing marketing campaign ? Building brand proposition to different consumers according to their perception (e. g. smartness for youth, taste and nutrient for children and family consumers). ? Creating customer loyalty and making customer delight by proper quality assurance campaign

Target customer

Geographic location: Dhaka city for first 5 years (see Appendix A5) ? Demographic: Social class—middle class and high end consumer. Age— 10-24 and 25-55 are two prospective buyer segments for flavored milk and original milk respectively ? Prospective buyers: Around 2,500,000 (35% of total Dhaka city population fall under Poto’s target customer segments) Market positioning: Poto positions itself in the market on the basis of low price and tasty-nutrient non-dairy milk benefits. The product positioning map shows the unique positioning of Poto relative to itscompetitors.

Marketing mix

Poto’s combination ofproduct, price, promotion and distribution and other marketing activities needed to meet the marketing objectives is: ? Product— Poto offers two basic types of product line: original and flavored. The pack sizes of Poto Original are 500 ml and 1litre.

Poto Flavored offers 3 flavors (chocolate, strawberry and vanilla) with pack size 250 ml and 1litre.

Poto uses state-of-the-art tetra pack technology for packing its offers. The shelf life of Poto is 4 months for original and 6 months for flavored. ? Price— The following price list shows the wholesale and retail price of product lines: [pic] Distribution Channels— Poto uses a simple distribution channel with zone-wise distributors. The Dhaka city has divided into 9 different zones covering 19 areas (see Appendix A5). Finished Poto products come directly to a Dhaka city warehouse from the plant. Sales team uses firm’s covered van to distribute the product to the dealers.

It uses different specific day for specific zone. Then the secondary distribution channel leads by the dealers distribute the product by using their own resources. Poto also make strategic alliance with super stores and educational institutes’ canteens to sell Poto. Integrated marketing communication— Poto’s marketing communication mix or promotion mix includes all the typical elements like advertising, sales promotion, public relations, personal selling and direct marketing to activate pull strategy (see Appendix A7). Some of the tools are— ?

TVC, FM radio ads, Newspaper ads Buzz Marketing (opinion leaders: Doctors) “Poto goes to school” campaign “Poto’s quality assurance campaign” SMS contest Point of purchase ads.

Marketing budget: The five year allocation of marketing budget at affordable method shown below: [pic] 6. 7 Customer service and control: 24/7 call center always and retailer survey quarterly conducted by the marketing team to know the first hand information of the consumers. The total marketing plan is flexible and open for any required contingencies.

OPERATION

Production:

The production of Poto is done in the own operational plant in Sirajganj because the availability of raw-materials as well as the convenient transport and communication. The operation of Poto would consist of three phases— procurement and storage, production and packaging phase. Procurement and storage— The pre-production is run by the procurement and storage unit. The procurement unit is responsible for purchasing 200 tonnes of potatoes and other ingredients in FY 2009-10, 500 tonnes of potatoes and other ingredients in FY 2010-11 and adds 50 tonnes each succeeding years.

The storage unit stores the raw-materials in own 500-ton capacity cold storage. Production phase— The production phase transforms the potatoes into milk which is the finished product. The production unit produces 500 tonnes milk in FY 2009-10. Packaging— In this phase produced milk is packed in tetra packs of 250 ml, 500 ml and 1 litre.

Placement of order: The distributors and dealers can place orders by using order form or through internet. The customers can place orders only through the website.

Delivery: Milk is delivered in 1 dozen retail pack or 50 pcs wholesale pack.

The local dealers are responsible for home delivery with extra commission.

Billing: Milk distributors are required to make payment within 45 days. Accounts payable would be paid within next year.

Quality control: Internal quality control is closely monitored by the production manager and supervisors and low quality outputs are disposed. The weight of each pack is automatically checked.

IMPLEMENTATION PLAN

Project implementation schedule:

The project starts at July 2009 and the commercial launch is on January 2010. The 6-month project implementation schedule is as follows: [pic]  Resource ramp-up: With a view to implement the project, resource ramp-up is very vital. The financial resources (equity and debt) and human resources are the key elements. Financial resources are vital for uplifting capital investments and working capital. Human resources are significant throughout the entire business process.

RESOURCE REQUIREMENT

Capital investments: The starts up expenses are projected to be BDT 513,500. Initial capital expenditures for starts up assets are projected to be BDT 7,980,000. The firm’s project cost is BDT 8,493,500. The project cost is financed by 69% equity provided equally by the partners and 31% debt provided by financial institution. Personnel requirements: Staffing needs— at the initial phase, the operation of Poto is monitored by three department heads categorized as procurement and storage, production and sales and administration. Employee needs— the head of the departments are taken from the partners and requirement for labors, supervisors and managers are fulfilled from outsource. External resources: Suppliers, distributors, superstores and lenders.

OWNERSHIP FORM AND MANAGEMENT TEAM

Poto firm is a partnership of three capital provider. Poto’s organization structure is top-down hierarchical structure with same authority among peers Poto’s management team consists of 14 executives like following

RISK ASSESSMENT

General risks: The project is associated with following general risks: Demand risk— the price of substitute and other options’ production cost lowering may shiver the demand of potato milk. Supply risk— the main raw material of potato milk is abundant in Bangladesh but the other ingredients’ supply may impede the production. Regulatory risk— the standard testing of the product and business approval is highly regulated by our government but the sector is going to be the thrust sector so regulatory risks are going to be lessened.

Risk from PEST analysis: The project is associated with following risks analyzed from PEST analysis: Political risks—the political variables hamper are strikes, terrorism, instability etc. Economic risks— the project is affected by economic parameters such as inflation rate, consumer price index, recession etc. Socio-psychological risks— non-dairy milk is a new product in people’s lifestyle so it may has setback regarding people’s acceptance. Technological risks— technological changes, invention of new alternative milk may cause problem

SWOT ANALYSIS

EXIT STRATEGY

(Contingency Plan) In the exporting phase the firm may apply for government assistance and tax benefits as an exporting agro-processor. Firm’s primary exit strategy is converted into private limited company from partnership firm to reduce capital problem (if occurs) and skill managing. Firm’s secondary exit strategy will be merged with another milk company to lessen the risk of being dissolute.

Cherno Okafor Aida Stefani SBI4U Octover 20th, 2012 Assignment 1: Cellular Biology furthers technology-Enzymes in the Dairy Industry Since ancient times, enzymes have played an important role in food production. Especially in the diary industry, some enzymes are required for the production of cheese, yogurt, and other dairy products, while others are used in a more specialized fashion such as improving texture or flavour of the product. Enzymes are used to catalyze the desirable reactions in industrial processes. Today, enzyme applications in such processing get more difficulties because of the rare occurrence and high costs.

The aim of using the microbial enzymes is to achieve this problem. Five of the more common types of microbial enzymes involved in the dairy industry involve: Rennet, Proteases, Lactase, Catalase, and Lipases. Milk contains proteins, especially caseins which maintain its liquid form. Proteases are enzymes that are added to milk during the process of cheese production, to hydrolize caseins, like kappa caseins, which stabilizes micelle formation and thus preventing milk coagulation. On the other hand, rennet and rennin are general terms for enzymes used to coagulate milk.

The Chymosin enzyme which can be obtained from animal, microbial, or vegetable sources, is responsible for up to 70% of cheese production. It is now possible to produce chymosin in genetically modified fungi. These modified microorganisms contain the gene derived from the stomach of calves that is responsible for producing chymosin. When grown in a bioreactor, they release chymosin into the medium. Afterwards, the enzyme is extracted and purified, yielding a product that is 80%-90% pure. Natural rennin contains only 4%-8% active enzyme.

Chymosin produced by genetically engineered microorganisms is now used to produce cheese in many different countries. Rennet (Chymosin) has owed to an increase in demand for cheese production worldwide. Rennin acts on milk in two stages, by enzymatic and by nonenzymatic action, resulting in the coagulation of milk. In the enzymatic phase, the resultant milk becomes a gel due to the influence of calcium ions and the temperature used in the process. Many microorganisms are known to produce rennet-like proteinases, as mentioned above, which can substitute the calf rennet.

Good yields of milk-clotting protease may be obtained in a medium containing 4% potato starch, 3% soybean meal, and 10% barley. During growth, lipase is secreted together with the protease. Therefore, the lipase activity has to be destroyed by reducing the pH, before the preparation can be used as cheese rennet. Protease is another notable enzyme. Cow milk contains a number of different whey proteins such as lactoglobulin and lactalbumin. The denaturing of these whey proteins, using proteases as catalysts, results in a creamier yogurt product. The denaturing of whey proteins is also essential for cheese production.

In addition, proteases reduce allergic properties of cow milk products for infants, which produce healthier milk for them. Lactease is a glycoside hydrolase enzyme that decomposes lactose into its constituent sugars of galactose and glucose. Lactose intolerant individuals can result from insufficient production of lactase enzyme in the small intestine. Feeding lactose-containing milk to lactose-intolerant individuals can result in discomforts such as: cramps, gas, dehydration, diarrhoea in the digestive tract upon ingestion of milk products, or maybe even death.

Lactase provides relief for lactose and tolerant individuals because it can be used commercially to prepare lactose-free products, particularly milk by the process of hydrolysis of the lactase into glucose and galactose. In addition, lactase enzymes can be used in preparation of ice cream to make a creamier, sweeter-tasting product and improving digestibility. Finally, this reduces sandiness due to crystallization of lactose in concentrated preparations. Also, cheese manufactured from hydrolyzed milk ripens more quickly than the cheese manufactured from normal milk.

Another problem presented by lactose is its low solubility. This prevents the use of concentrated whey syrups in many food processes as they have an unpleasant sandy texture and are readily prone to microbiological spoilage. Adding to this problem, the disposal of such waste whey is expensive due to its high biological oxygen demand. These problems may be overcome by hydrolysis of the lactose in whey; the product being about four times as sweet, much more soluble and capable of forming concentrated, microbiologically secure, syrups.

Technologically, lactose crystallizes easily which sets limits to certain processes in the dairy industry, and the use of lactase to overcome this problem has not reached its fullest potential because of the associated high costs. Moreover, the main problem associated with discharging large quantities of cheese whey is that it pollutes the environment. But, the discharged whey could be exploited as an alternate cheap source of lactose for the production of lactic acid by fermentation. In the production of cheese, hydrogen peroxide is a potent oxidizer and toxic to cells.

Catalase enzymes are used are used instead of pasteurization, when making certain cheeses such as Swiss, in order to preserve natural milk enzymes that are beneficial to the end product and flavour development of the cheese. Due to pasteurization, these enzymes would be destroyed by the high heat. Therefore, Catalase enzymes are typically added to convert to the hydrogen peroxide to water and molecular oxygen which will enhance final production. Finally, there are the lipases in the dairy industry. Lipase enzymes are primarily used to break down milk fats and give characteristic flavours to cheeses.

The flavours come from the three fatty acids produced when milk fats are hydrolyzed. Hydrolysis of shorter chains of fatty acids is preferable as it results in desirable tastes of many cheeses unlike the hydrolysis of longer chains of fatty acids which could result in soapiness or no flavour at all. It is notable to mention egg products. Many industrially produced cream products used dried egg powder instead of fresh eggs. The enzymes of lipase and glucose are implemented in order to preserve egg powder and maintain its colour.

These enzymes are often produced with the assistance of genetically modified microorganisms. Genetically modified microorganisms result in better yields in simply systems. Several cheese making experiments have been carried out with recombinant chymosin and the general aspects of recombinant chymosin have been dealt with. Since most of the rennet (>90%) added to cheese milk is lost in the whey, immobilization would considerably extend its catalytic life. Several rennets have been immobilized, but their deficiency as milk coagulants has been questioned.

So, there is a fairly general support for the view that immobilized enzymes cannot coagulate milk properly, owning to inaccessibility of the peptide bond of K-Casein, and that the apparent coagulating activity of immobilized rennets is due to leaching of the enzyme from the support. Different types of conventional cheeses have been successfully made by using recombinant rennet on an experimental scale. No major differences have been detected between cheeses made with recombinant chymosins or natural enzymes, regarding cheese yield, texture, smell, taste, and ripening.

Cheese ripening is a complex process mediated by biochemical and biophysical changes during which a bland curd is developed into a mature cheese with characteristic flavour, texture, and aroma. The desirable attributes are produced by the partial and gradual breakdown of carbohydrates, lipids, and proteins during ripening, mediated by several agents (i) residual coagulants, (ii) starter bacteria and their enzymes, (iii) nonstarter bacteria and their enzymes, (iv) indigenous milk enzymes, especially proteinases, and (v) secondary inocula with their enzymes.

Proteolysis occurs in all the cheese varieties and is a prerequisite for characteristic flavour development that can be regulated by proper use of the above agents. Cheese ripening is essentially an enzymatic process which can be accelerated by augmenting activity of the key enzymes. This has the advantage of initiating more specific action for flavour development compared to use of elevated temperatures that can result in accelerating undesirable nonspecific reactions, and consequently off flavour development.

Enzymes may be added to develop specific flavours in cheeses, for example lipase addition for the development of Parmesan or Blue-type cheese flavours. The pathways leading to the formation of flavour compounds are largely unknown, and therefore the use of exogenous enzymes to accelerate ripening is mostly an empirical process. Moreover, there are Proteolytic enzymes of lactic acid and bacteria in fermented milk products.

This system is composed of proteinases which initially cleaves the milk protein to peptides; peptidases which cleave the peoptides to small peptides and amino acids; and transport system responsible for cellular uptake of small peptides and amino acids. Lactic acid bacteria have a complex proteolytic system capable of converting milk casein to the free amino acids and peptides necessary for their growth. These proteinases include extracellular proteinases, endopeptidases, aminopeptidases, tripeptidases, and proline-specific peptidases, which are all serine proteases.

Aminopeptidases are important for the development of flavour in fermented milk products, since they are capable of releasing single amino acid residues from oligopeptides formed by extracellular proteinase activity. Nevertheless, the other minor enzymes having limited applications in dairy processing include: glucose oxidase, catalase, superoxide dismutase, sulphydryl oxidase, lactoperoxidase, and lysozymes. Glucose oxidase and catalase are often used together in selected foods for preservation. Superoxide dismutase is an antioxidant for foods and generates H2O2, but is more effective when catalase is present.

Thermally induced generation of volatile sulphydryl groups is thought to be responsible for the cooked off-flavour in ultra high temperature processed milk. Use of sulphydryl oxidase under aseptic conditions can eliminate this defect. The natural inhibitory mechanism in raw milk is due to the presence of low levels of lactoperoxidase, which can be activated by the external addition of traces of H2O2 and thiocyanate. The societal impacts of some dairy enzymes are that chymosin, a high quality enzyme, is available at an attractive price.

This helps assure available of extra cheeses at a reasonable cost. Due to the lipases, there is a wide variety of flavourful, high-quality cheeses. To sum up, I think that it is amazing that there is a wide variety of alternatives of dairy products as a result of these enzymes that aid the dairy processes. The lactase enzymes can now help individuals enjoy the nutritional benefits and sensory pleasure of dairy products without gastrointestinal side effects by selecting lactose-free or lactose-low dairy products or by providing commercially available lactase to dairy products in the home.

It is interesting how these enzymes sustain processes that enable higher yields, more enzyme production; and higher activity, more efficient, affective, dynamic enzymes. Bibliography Category. “Enzymes in the Dairy Industry – Uses for Enzymes in Food Preparation – Enzymes and Dairy Products. ” About. com Biotech and Biomedical Pages. About. com, n. d. Web. 20 Oct. 2012. <http://biotech. about. com/od/casestudies/a/dairyenzymes. htm “Dairy Products, Eggs, and Genetic Engineering. ” GMO COMPASS – Information on genetically modified organisms.

GMO Compass, n. d. Web. 20 Oct. 2012. <http://www. gmocompass. org/eng/grocery_shopping/processedfoods/29. dairy_products_eggs_genetic_engineering. html “DSM Food Specialties – Dairy Enzymes. “WWW. DSM. COM. DSM, n. d. Web. 20 Oct. 2012. <http://www. dsm. com/le/en_US/foodspecialties/html/dairy_enzymes_page. htm “Enzymes: A Primer On Use And Benefits Today And Tomorrow. ” Enzymes: A Primer On Use And Benefits Today And Tomorrow. Enzyme Technical Association, n. d. Web. 20 Oct. 2012. < http://www. nzymetechnicalassoc. org/benefits_paper. pdf >. “Enzymes are used in Dairy Industry. “Enzymes are used in Dairy Industry. N. p. , n. d. Web. 20 Oct. 2012. < http://prof. dr. semih. otles. tripod. com/enzymesused/dairy1. htm >. “Production and use of microbial enzymes for dairy processing. ” Indian Institute of Science, Bangalore. Dairy Microbiology Division, National Dairy Research Institute, Karnal 132 001, India, n. d. Web. 20 Oct. 2012. <http://www. iisc. ernet. in/currsci/jul10/articles22. htm

TABLE OF CONTENTS I. Executive Summary2 II. Situational Analysis- Macroenvironment Analysis5 a. Technological Environment6 b. Economic Environment7 c. Socio- Cultural Environment8 d. Natural Environment9 e. Political-Legal Environment10 III. Situational Analysis- Market Analysis f. Market Definition11 g. Market Size12 h. Industry Structure14 i. Porter’s Five Forces Analysis15 j. Competition19 k. Market Trends21 IV. Situational Analysis – Consumer Analysis22 V. Situational Analysis – Internal Analysis26 VI. SWOT Analysis35 VII. Marketing Research37 VIII. Marketing Strategies40 IX. Implementation43

X. Financial Summary64 XI. Scenario/Contingencies65 XII. Appendix66 I. Executive Summary Alaska Milk Corporation (AMC) is one of the leading companies in milk production from the dairy industry. We have been manufacturing dairy products in the Philippines since 1972 starting with liquid canned milk products and eventually expanded to manufacture powdered filled milk and Ultra High Temperature (UHT) milk products. For over thirty years, AMC has emerged to be as one of the two major players in the Philippine milk industry and is consistently maintaining its brand leadership in the liquid anned milk category and holds a strong growing position in powdered milk. AMC also expanded into higher value-added milk products, particularly in UHT/Ready-to-Drink milk category. Since 1972, we have been caring for every Filipino family by providing them their good nutrition and health through quality milk products. Also in every other way such as: programs that promote sports development, campaigns that foster good values among children and product innovations aimed at enhancing the Filipino’s health and welfare. And we shall continue caring for every Filipino family from every part of the country, may it be Luzon, Visayas or Mindanao.

The market for milk and dairy products in the Philippines comprises two very different segments: market for milk and dairy products that are processed in the Philippines from imported dairy ingredients that comprises 99% of the total market and the other 1% which is the market for products that are produced from locally produced raw milk by the Philippines dairy farming industry. Dairy products are commonly seen in every store, from wholesale to retail stores, and the demand for it never diminishes. Every individual will always have to put in mind the need for their health and nutrition.

Milk products are one of the basic necessities we should provide our bodies and that is programmed especially on the minds of every Filipino family in the country. Alaska provides the best kinds of milk from liquid to powdered that can ever be provided to every consumer market. AMC’s target markets are consumers ranging from 4-12 years old. Majority of the customers are female and only few are men. Mainly because most of the buyers are housewives or single parents and the children they have are the consumers of the milk produced by AMC.

AMC continues building the strengths and competitive attributes of its brand and develop its full marketing potential in the dairy industry. Serve every consumer to their level of satisfaction and will respond to the call to deliver higher quality nutrition to every Filipino home. To increase product awareness, specifically on its powdered milk product and the rise of our market share by 2 percent annually in three years. AMC has experienced and well-trained employees that helps in driving AMC forward with continuous superiority on product quality and strong supplier relationships.

But then as costs increases, product prices also tend to increase and results to higher prices over competitors and include the products’ seasonal demand and the limitation of its supply base. AMC’s edge over other brands is our strong and popular reputation in the market that reveals that we have a lead in every consumer mind. Rapid technological advancements have led to innovation and faster production with still better and high quality of goods and wider product distribution nationwide.

As AMC rises, many threats will stand in the way such as; competitors tend to escalate and siege AMC’s growth in the market that leads to the buying behavior of consumers to change by substituting Alaska Milk Products to these cheaper brands, price wars between competitors, price cuts and so on could damage profits for AMC brought about by the economic crisis in the country. Alaska’s powdered milk is creamier and tastier than any other brand in the market. Its availability and affordability may be like other brands but its focus will stay on the powdered milk’s creaminess which makes it deliciously tasty that is enjoyed by many consumers.

Also, a unique source of Alaska powdered milk’s production is that it uses the finest vegetable oil from coconuts to make it as creamy and tasty as full cream milk. II. Situational Analysis – Macro-environment The macro-environment analysis are the factors that greatly affects the dairy industry. These are considered the external analysis. It is sub-divided into five aspects: technological environment, natural environment, political-legal environment, economic environment and socio-cultural environment.

The technological environment deals with how the advent of technology affects the production of dairy products and the way the consumers receive the final products. With the modernity of facilities and equipment, the production of milk becomes better and faster. The natural environment deals with the natural issues that affects the dairy industry. Certain issues can either help or deter the buying decision of consumers. The political-legal environment deals with certain laws and regulations passed by the government that must be followed.

It affects the dairy industry in a way that all companies must abide to this laws in order to operate. The economic environment is about the current economic changes that affects the society, the industry and the consumers. It greatly affects the consumer spending. The last aspect is the socio-cultural environment which is about the beliefs, norms, values and culture practiced by the consumers. It indicates person’s behavior and social graces that leads to the buying preference of consumers. a. TECHNOLOGICAL: i. With the demand of people for faster and better products and services, technology was created.

It has provided the industry for the tools needed to enhance the techniques and strategies to make dairy products better. Through technology, the way people search for information about the products, the way on how to purchase, and the way on receiving goods are greatly influenced. Factors| Effects on the Industry| Online Retailing| Vast market can be reached by selling goods to people over the net. This will provide better accessibility for the users of the product. | Electronic Data Interchange| It will link the company to its suppliers through communication advancements.

Making products available to different establishment. | Customer Relationship Management (CRM)| A marketing tool that binds the power of computers and databases to provide the ability to collect data about consumer buying behavior on individual basis. It will help the industry to familiarize the demands of the consumers and analyze their buying behavior and produce products that will meet the needs and wants of the consumers. | b. ECONOMIC: ii. The economic environment scan determines the economic changes that will have an impact to the society, dairy industry and AMC like unemployment rate, exchange rate and inflation rate.

In the dairy industry, these factors affect the level of income of people. Thus, affecting the buying behavior and preferences of consumers. Factors| Effects on the Industry| Decreasein unemployment rate| The decrease in unemployment rate gives probability to an increase in family income resulting to increase in purchasing power. This will lead to profitable commerce and increase in sales of the industry. | Changes in exchange rates| The appreciation of Philippine Peso against US Dollar will lead to a less operating expense in the dairy industry. Inflation Rate| Due to increase of expenditures in the industry, cost of sales will swell making the consumers carry the burden of expenses. | c. SOCIO-CULTURAL: iii. Socio-cultural trend analysis is one of the important factors in making and developing strategic analysis. The socio-cultural environment shapes our beliefs, values and norms. In relation to the dairy industry, this socio-cultural environment analysis indicates person’s behavior and social graces that may lead to change in preference and variation in consumer’s buying behavior. Also, certain beliefs and values can serve as advantage or disadvantage for the part of AMC.

Factors| Effects on the Industry| Campaign for Milk Benefits and Usage| Consumers will have better awareness over the industry’s product which will attract more potential customers. | Projected increase in the population| With a population of 101,833,938 (July 2011 est. ) will lead to increase in the need of product. As population gets bigger, a result of higher sales and earnings is expected. | Breast feeding vs. Formula milk| Nutrients found in the mother’s breast milk can be compared to this formula milk. But with the fast pacing everyday routine, formula feed milk can be prepared anytime. Thus it will lead to more consumers and sales. d. NATURAL/ECOLOGICAL: iv. The natural environment scan is about the issues that affects the dairy industry. In particular with the environmental issues like melamine outbreak and green marketing. As well as the nutritional facts of the products produced in the dairy industry. Certain issues can either help or deter the buying decision of consumers. Factors| Effects on the Industry| Global problems and green industry| Natural calamities and disasters can delay the production of dairy products. Thus, it may lead to decrease in the total sales of the industry. Green marketing will enable the industry to reduce its waste material.

Thus, making a cleaner planet. | Cholesterol content of dairy products| Health and body conscious people will not consider consuming much of dairy products as source of energy. | Melamine Outbreak and contamination of dairy products. | Contamination like the melamine outbreak threatens the industry growth and decreased sales of products that use milk as an ingredient. As a result, it slackens the growth of dairy industry. | e. POLITICAL-LEGAL: v. The political-legal environment is about how the dairy industry will adapt to changes in relation to proposed legislations, programs and other government related issues.

It is important to know the factors affecting the political and legal environment so that AMC will be able to abide to certain legislations and programs. Factors| Effects on the industry| Republic Act No. 7581: The Price Act| Automatic freezing of basic necessities’ prices in areas where a state of calamity is declared. | Republic Act no. 7884: National Dairy Development Act of 1995| Improve livelihood opportunities and thereby increase income level through the dairy industry. In effect, there will be an increase in the milk produced locally and an increase in quality of living. Republic Act 7394: Consumers Act| Establishes standard and quality measures for milk and adopt measures for their pure and safe supply. | III. Situational Analysis – Market Analysis * Market Definition Dairy industry involves processing raw milk into products such as consumer milk, butter, cheese, yogurt, condensed milk, milk powder, and ice cream, using processes such as chilling, pasteurization, and homogenization. The dairy industry is divided into 5 different product categories; yogurt, butter, milk. Cheese and ice cream.

The milk category is subdivided into 6 types, cream, powdered milk, evaporated milk, condensed milk, dried powder milk and cultured buttermilk. INDUSTRY STRUCTURE Figure 1: Industry Structure Source: www. nda. da. gov. ph/ * Market Size The Philippines, with a population of 95,687,643 (July 2011 est. ), growing annually at 1. 903% (2011 est. ), is a large market for milk and milk products. Dairy products are the country’s second largest agricultural import after wheat. The country’s dairy industry, which sources 99% of its inputs from abroad, is estimated to generate sales of up to P 43. 45B annually.

Philippines is a huge market for milk and milk products with a small dairy farming community that has been growing vigorously for the past two years. The dairy market generates sales amounting to P44B annually. Although Filipinos are generally considered non milk drinkers with consumption at 19 kilograms per year, the Philippine dairy market, including the market for imported milk, generates over P44billion in revenues annually. 44% of the demand for milk is concentrated in Metro Manila. Luzon 46,228,000 (2011 est. ) Luzon 46,228,000 (2011 est. ) Visayas 27,877,103 (2011 est. ) Visayas 27,877,103 (2011 est. )

Mindanao 21,582,540 (2011 est. ) Mindanao 21,582,540 (2011 est. ) * Industry Structure The market for milk and dairy products in the Philippines comprises two very different segments: * The market for milk and dairy products that are processed in the Philippines from imported dairy ingredients or imported in retail packed form. This comprises well over 99% of total consumption; and, * The market for products that are produced from locally produced raw milk by the Philippines dairy farming industry. This comprises 1% of total raw milk. Suppliers of imported milk (2011)| Percentage| Australia | 61%|

USA | 23%| Others| 16%| TOTAL | 100%| Table 1: Major Suppliers of imported milk(2011) Source: www. nda. da. gov. ph/ The Philippines’ dairy industry consists of two distinct sectors. One is the milk powder based sector that imports, re-processes and repacks milk and milk products. The other is the liquid milk sector that has its imported UHT milk component and the locally –produced fresh milk component. SECTOR| IMPORTER- REPROCESSOR| LOCAL MILK PRODUCER-PROCESSORS| TOTAL| Liquid milk market| 70| 30| 100| Powdered and other milk market| 100| 0| 100| Table 2: Sectors in dairy industry. Source: www. nda. da. ov. ph/ Figure 2: Total Raw Milk Segmentation Source: www. nda. da. gov. ph/ * Porter’s Five Forces Analysis Figure 3: Porter’s Five Forces Analysis Threat of New Entrants (Barriers to Entry) The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. * Existing loyalty to major brands Consumers buy specific Alaska products that they usually buy. Other local or new entrant companies will be having a hard time competing with Alaska brands since their consumers are loyal to them. Scarcity of resources Philippines imports 99% of its raw milk and only 1% are produced locally. New entrant companies will need a huge budget for importing raw milk. * Government restrictions or legislation Certain requirements provided by the government should be met by the new entrant companies in order to start their business. These restrictions and legislations help AMC to minimize competitors and to remove illegal distributors. Power of Suppliers This is how much pressure suppliers can place on a business. If one supplier has a large enough impact to affect a company’s margins and volumes, then it olds substantial power. Here are a few reasons that suppliers might have power: * Number of Suppliers Large number of suppliers will then result to a high inventory level for raw milk used for the production of dairy products. * Capacity of Supplier Suppliers must be able to sustain the quantity of raw milk needed by the company’s dairy production. * Cost of Changing The total money, time and resources associated with the change of supplier. Buyer Power Buyers are the people or organizations who create demand in an industry.

The bargaining power of buyers is greater when: * Number of Customers Large number of buyers will then result to large amount of sales in the consumption of dairy products. * Size of each order The capacity of a customer to buy a certain product on a single purchase in order to fulfill their satisfaction. * Price sensitivity Gradual price changes should be observed to not greatly affect the consumption of the goods in the market. Threat of Substitution The presence of substitute products can lower industry attractiveness and profitability because they limit price levels.

The threat of substitute products depends on: * Substitute Performance Other brands that offer the same quality of dairy products but have lower prices will threaten the competency of the company’s products throughout the market. * Cost of change Improving the product quality and decreasing the price at the same time to reach the same demand as the competing brand. Intensity of Rivalry The intensity of rivalry between competitors in an industry will depend on: * Number of competitors Large number of competitors can threaten your position in the market. * Quality differences

Aside from quantity, companies must maintain the quality of their products. In dairy industry, it is important to monitor the quality of the products because it will be your advantage over your competitors. * Customer loyalty There will be a little possibility that loyal customers will be persuaded by the competitors to switch over their products. Also, loyal customers can be company’s asset since they can use the word-of-mouth. * Competition Nestle remains the undisputed leader in drinking milk products in 2011 with a market share of 72%, 64% for Bear Brand and 8% for Nido.

The company’s very strong position is attributed to its long standing presence in the Philippines which enabled it to achieve strong brand equity for its brands. Alaska ranks second with 20% market share. One percent lower than the previous market share. Competitor| Company| Placement| Promotions| Product sizes and Price| Bear Brand| Nestle’ Philippines| Available in all leading supermarkets nationwide. | Free items, TV, Print and Radio advertising, Events and Sponsorships| 33g – P9. 5080g – P25150g – P46. 75300g – P89. 25680g – P192. 251. 1kg – P331. 252. 2kg – P634. 0| Nido Fortified| Nestle’ Philippines| Available in all leading supermarkets nationwide. | Free items, TV, Print and Radio advertising, Events and Sponsorships| 160g – P68. 70370g – P157700g – P274. 50900g – P3361. 2kg – P467. 251. 8kg – P680. 402. 5kg – P929| Anchor Full Cream Milk| Fonterra Brands Philippines Inc. | Available in all leading supermarkets nationwide. | Free items, TV and Print ads| 150g – P68. 75350g – P157. 50700g – P276. 50| Birch Tree| Snow Mountain Dairy Corporation| Available in all leading supermarkets in GMA, North and South Luzon| TV ads| 80g – P25. 75150g – P48300g – P93. 50700g – P212. 0| Table 3 : Market share of Powdered Milk Category Comparison Table Source: AC Nielsen Figure 4 : Market Share of powdered milk for 2011 Source: AC Nielsen * Market Trends The lifestyle of the urban Filipino is continually changing wherein a local patron not only spends more time away from home but home cooked meals are being replaced by packaged or ready-to-eat meals. With the Filipino propensity for buying only for their daily needs, the variety and availability of smaller retail packs has increased. Food processors realize that this is a huge segment of the market and develop sachet packaging accordingly.

Metro Manila remains as the major market for fresh milk classified into business and consumer markets. The business markets include the institutional markets and the retail sector such as coffee shops, hotels, restaurants, supermarkets and small retailers. Meanwhile, the consumer markets include households and schools through the milk feeding program of the government. Consumption of drinking milk products remains dependent on the level of consumer disposable income. During 2011, there has been a challenge for customers to stretch their budgets due to skyrocketing commodity prices coupled by the volatile prices of fuel and utilities.

With these struggles, disposable income has declined which became unfavorable in the consumption of drinking milk. Some middle and lower income consumers are not really milk consumers and milk has a low priority on grocery lists. IV. Situational Analysis – Consumer Analysis The main customers of Alaska powdered milk are composed of parents who have children ages 4-12 who are currently in the so called “growth gap years”. Teens also consume the product because of its rich taste and creaminess. * Nature of the buying decision According to research 25% of the total grocery budget of people are spent on beverages.

And 10 percent of it goes to milk drinks while 5-7 percent goes to milk/dairy products. The average budget for grocery is P 7, 703. Figure 5: Consumer Spending 2011 Source:TNS Global Research * Geographic Philippines is chosen to be the target location of this strategic plan. It has a population of 95,687,643 (July 2011 est. ). The population of Luzon is 46,228,000 (2011 est. ). Visayas has 27,877,103 population (2011 est. ) and Mindanao has a population of 21,582,540 (2011 est. ). Below are the areas with their following percentage in grocery budget for milk beverage.

Metro Manila together with Rizal got the highest percentage among all the areas with 13%. And urban areas give higher priority in milk beverages rather than those in rural areas. Table 4: Average Current Budget 2011 Source:TNS Global Research * Demographic The consumers are ranging from 4-12years old. Majority of the customers are female and only few are men. This is because the main customers are housewives or single parent and men are usually in their own jobs. The household income bracket of the consumers ranges from P30, 000. 00 to P 7,000. 00 and below. And the average budget they allot for grocery is P7, 703.

Wherein P8, 400 are the average grocery budget of people in urban areas while P5, 400 are being spent in rural areas. Class C allots an average of P 12,000 for their grocery budget. * Psychographics The socio economic status is Class C. Class C is the majority of the consumers which composes of families with regular compensation. Consumers are mostly College Undergraduate and High School Graduate. The consumers are identified as Makers. These consumers are the low-resource group of those who are motivated by self- expression. They are practical people who value self- sufficiency.

They are focused on the familiar- family, work, and physical recreation- and have little interest in the broader world. As consumers, they appreciate practical and functional products. The customers of Alaska milk products are housewives and single parents. They are practical in choosing products to buy and are more focused in family life while single parents are focused on their work at the same time with their child. They are also practical in buying products since they are the only one that supports the child. * Benefits Good quality of milk products, nutritional value and value for money are the most expected benefits of the customers.

The product should be produced with good quality containing all the nutrients needed of children during their growth gap years with reasonable price. * Usage Patterns Customers are considered to be long time users since the Alaska brand has been trusted for 40 years. People grew up with the Alaska Powdered Milk and because of the intergeneration effect, relatives and mothers are usually the entities to influence the usage of the product. Advertisements also influence the usage pattern of the consumers. * Purchase Patterns The frequencies of purchasing product were in weekly and monthly basis.

The numbers of milk products brought per week or per month are depending on consumers’ necessities and preferences. In supermarkets, groceries, and sari- sari stores mostly the products are brought. * Consumer/ Customer Preferences Consumers prefer a milk product that has their demanded qualities like deliciously sweet and creamy, nutritious and affordable. The four P’s, Product, Price, Place, and Promotion were all important factors considered in selection of what milk products/brand to buy. V. Situational Analysis – INTERNAL ANALYSIS ALASKA MILK CORPORATION (AMC) is a leading manufacturer of milk products in the Philippines.

It has established a strong brand heritage and recognition among Filipino consumers with its traditional liquid canned milk products, marketed under the Alaska brand. In addition, the Company has developed a strong competitive position in the powdered milk category and a growing presence in the UHT ready-to-drink and ready-to-use segments. Company Resources * Financial Alaska Milk Corporation delivered another year of solid performance, ending 2010 with a new record net income of P1. 82 billion, a 29% improvement over the P1. 41 billion net income earned in 2009.

Fueling the growth was the strong sales volume expansion across the Company’s portfolio of milk products alongside lower input costs as well as prudent spending. Net sales for 2010 grew by 15% to P12. 16 billionfrom P10. 58 billion a year ago, underpinned by the double-digit growth of the domestic milk market as the Philippine economy sharply rebounded from the slowdown in 2009. In addition, sustained advertising campaigns and demand-generating promotional initiatives help pushed sales volumes higher yearon- year, a significant achievement amidst aggressive competition and market challenges.

Operating expenses for the year increased significantly, by 22% at P2. 28 billion from P1. 87 billion in 2009. The increase can be attributed to higher advertising and promotional spending to boost consumer demand for Alaska Milk products. (In million pesos) Figure 6: Net Sales of AMC (In million pesos) Figure 7: Net operating expenses of AMC (In million pesos) Figure 8: Net Income of AMC (In million pesos) * People Alaska Milk Corporation recognizes that their people, the Alaska Team members, are one of their most important assets and they are committed to promote their safety and welfare.

Their wealth of experience, ideas, dedication and strong work ethic lay the foundation for the Company’s continued success. It is the company’s goal as much as it is theirs, to pursue and reach their full potentials through continuing education, training, and skills-enhancement programs. They challenge each individual by providing the opportunity to contribute to the Company’s endeavors. Total employees headcount as of December 31, 2010 are as follows: Executives-14 Managers and Supervisors-225 Rank and File-488 Consultant-1 Board of Directors Our board of directors have successful careers in businese, academe and public service.

With their wealth of experience, they add significant perspective and direction into how management shapes and executes business strategies. The Board of Directors is being led by Chairman Antonio Ozaeta. Management Team Our senior management team shares the same mission, vision and values — driven by a sense of accountability to be successful as individuals and as a company. The President and CEO of Alaska Milk Corporation is Wilfred Steven Uytengsu Jr. * Product Offerings * Liquid Canned Milk The Company’s first generation of milk products are Alaska Evaporated Filled Milk and Alaska Sweetened Condensed Filled Milk.

Alaska Evaporada and Condensada are the perfect enhancers for various food and beverage preparations. Today, Alaska Milk Corporation has a dominant position in the liquid canned milk category, accounting for nearly 80% of the market. * Alaska Evaporated Filled Milk * Alaska Sweetened Condensed Filled Milk * Cow Bell Condensada * Alaska Creamer * Alaska Evaporada * Alaska Condensada * Alaska Milk Corporation bought from Nestle: * Alpine * Liberty * Krem-Top * Krem-top All purpose Cream * Also long-term licensing agreement for AMC to manufacture and sell the ff. brands for liquid canned milk products: * Carnation * Milkmaid * Powdered Milk

The Company has likewise built a solid position in the Powdered Milk Category. With the heritage gained by the Alaska line of liquid canned milk products, the Company’s Alaska Powdered Milk Drink, the most nutritious powdered milk, has emerged as the second leading brand in the market. * Alaska Powdered Milk Drink * UHT Ready -to -Drink Milk Alaska Milk Corporation also offers a line of Ready-to-Drink milk products that come in both plain and flavored milk. The Company’s line of Ready-to-Drink milk products use Ultra High Temperature (UHT) process combined with aseptic packaging – to ensure product quality, hygiene and longer shelf life. Alaska Fresh Milk * Alaska Slim Milk * Alaska Choco! * Alaska Sweet Milk! * Alaska Yoghurt Drink (Strawberry, Blueberry, Orange and Green Apple) * UHT Ready -to -Use Product Alaska Crema All-Purpose Cream is a result of the Company’s effort to broaden its product portfolio in higher value-added segments. Launched in 2003, Alaska Crema enhances the taste of a variety of food preparations, bringing gourmet goodness at home. * Alaska Crema All-Purpose Cream * Non-Dairy Coffee Creamer The latest addition to the Company’s portfolio of quality products is Alaska Krem-Top Coffee Creamer.

A non-dairy coffee creamer, Alaska Krem-Top enhances coffee experience with its rich flavor and aroma. In a blind test, more coffee drinkers in Metro Manila like Alaska Krem-Top better than the leading coffee creamer brand. * Alaska Krem-Top Coffee Creamer Alaska Milk Corporation currently has a partnership with Kelloggs due the complementary nature of the two products and the two companies’ thrust in promoting “healthy breakfast = cereals + milk”, and the former’s strong operational structure and distribution capabilities. * Objectives

Mission statement and Vision statement OUR VISION… Is to be a leading consumer foods company with a diversified portfolio of consumer food brands and products that are market leaders in their respective categories. OUR MISSION… PRODUCT DEVELOPMENT We will continue to build on the strengths and competitive attributes of the ALASKA brand and develop its full marketing potential. We will develop new products and identify market opportunities, mindful of our task to be responsive to the ever changing and growing needs of our consumers. PEOPLE

We recognize that our people, the Alaska Team Members, are on of our most important assets and we are committed to promote their safety and welfare. Their wealth of experience, ideas, dedication and strong work ethic lay the foundation for the Company’s continued success. It is our goal as much as it is theirs, to pursue and reach their full potentials through continuing education, training, and skills-enhancement programs. We challenge each individual by providing the opportunity to contribute to the Company’s endeavors. PROFITABLE GROWTH Growth that creates value for our shareholders is paramount.

We will deploy our resources on investment opportunities that are within our core competence and yield excellent returns relative to its risks and which are consistent with our growth objectives. SOCIAL RESPONSIBILITY We recognize our role in nation building by promoting the protection of the environment and taking part in various community-building projects that help enhance and uplift the quality of life of the underprivileged and the marginalized sectors of our society. * Financial objectives * To increase sales by 25. 5% within the strategic planning period. To increase the gross profit by 37% prior to the gross profit annually. * To lower operating expenses by 2% annually. * Marketing objectives * To increase product top of mind awareness amongst the target audience by 15% for the next three consecutive years. * To increase market share by 2% annually in three years. * To increase the BUMO (Brand used more often) percentage by 13% annually . VI. SWOT ANALYSIS INTERNAL FACTORS STRENGTHS| WEAKNESSES| * Experienced and well trained employeesExperienced employees are the key to the success of AMC helping to drive them forward with expertise and knowledge. Superior quality of productsHigh quality products/services is a vital strength, helping to ensure customers return to AMC. * Good Supplier RelationshipSupplier relationships are strong at AMC, which can only be seen as strength in their overall performance. | | * Higher price than competitorsCost and expenses in the production of milk results to high price of their product in the market. Thus, it will add up to the transportation costs of the product. * Fluctuating Demand of the product. The demand for the product is inconsistent. * Limited supply baseAMC uses imported milk for its products.

Future events that might happen, causing delay and disturbances in the supply chain, can affect the operation of AMC. | EXTERNAL FACTORS OPPORTUNITIES| THREATS| * Strong brand imageAMC’s reputation is strong and popular, meaning people view it with respect and believe in it. AMC’s position in the market is high and strong – a major strength in this industry as they are ahead of many rivals. * Technological AdvancementThe trend in the dairy industry is the use of new machineries and technology for faster production and better quality of milk. AMC can follow the trend to be able to top the industry. Limited choices of productsAMC can have diversified line of related milk products to offer in the market. | * Competition The dairy industry gets bigger and bigger because new entrants in the market. Existing competitors still creates and innovates products. Thus, competition becomes intense. * Product substitutionDue to consumers’ practicality, they prefer to buy cheaper substitute products. * Economic CrisisA slow economy or financial slowdown could have a major impact on AMC business and profits. In effect, price wars between competitors, price cuts and so on could damage profits for AMC. | VII.

MARKETING RESEARCH AC Nielsen conducted a marketing research last August 19, 2011 entitled “Project Silk Report: A Usage, Attitude and Image Study on Milk Products Used by Food Service Outlets ”. According to reasearch, powdered milk is not a widely used ingredient in food outlets. Only kapihans use powdered milk regularly. Moreover, relative to other milk categories, kapihans’ weekly purchase and usage volume for powdered milk is fairly low. Kapihans use powdered milk because it is creamy. Powdered milk is also liked because it is tasty and liked by customers. Alaska precedes Bear brand in terms of awareness and usage.

Bear brand owns the powdered milk category with high brand saliency and regular usage. Despite this, Alaska performs relatively better than other powdered milk brands, since they happen to have minimal or no usage at all from kapihans. Alaska and Bear brand excel on the same attributes: affordability & availability. Building a ‘creamy’ image for Alaska will be an advantage since the attribute is not strongly associated with Bear Brand. Also, creaminess happens to be one of the main reasons why kapihans use powdered milk. RESULTS: In general, powdered milk is not a widely used ingredient in food outlets with its usage primarily to kapihan.

Figure 10: Usage of Powdered Milk Another marketing research done by TNS International Research entitled “Project Hermes: Lifestyle and Brand Health Check”, suggests the following actions in the powdered milk category of AMC: * Sustain current retention strategies as well as current strengths on being easily available and affordable * Address challenges in brand usage in Ilocos, Cebu, Davao and among middle class by * further understanding their current needs and any white spaces * continuing with communication efforts addressed to these segments * Further strengthen branding of ads aired to maximize motivational promise.

It also discussed the advertising efforts of AMC and its competitors in the powdered milk category. The figure below shows the performance of the ads in powdered milk category. Figure 11: Ad performance measurement The TV ad of Alaska entitled “Alaska’s Buboy” featuring Caesar Montano gained positive comments. According to the research, the company did a great job in choosing Montano as the endorser of powdered milk. Montano gained 83% positive comments while 4% of the respondents viewed it negatively. And the remaining 11% did not comment. This shows that TV advertisements contributes alot to brand awareness.

VIII. MARKETING STRATEGY * Solution The first strategy to be used by the company is redesigning the product. AMC will create a new packaging design for the powdered milk so that it can capture the interest of the people. The next strategy to be used is development. We will add nutritional value to current powdered milk so that it can fully satisfy the needed nutrition of the children. The last strategy to be used is creation. We will innovate the product into another variety like Alaska Powdered Milk for Adults or Alaska Powdered Chocolate Milk to capture different segments of the market. Information The strategies to be used in creating and building brand awareness are focused advertising and sales promotions. One way to spark interest for AMC’s product is through advertising. We will develop a TV commercial since almost all household owns a television set. The next action that we will do is to advertise through transportation medium like taxis and buses. This action is applicable for Mega Manila. Lastly, we will print out stickers to be posted at the back of tricycles in the provinces. Another strategy is through sales promotion.

This can be through coupons and gift certificates, contests and collectibles and freebies. Lastly, we will be having events and sponsorship. We will conduct concerts for a cause and other fund raising activities. The funds that we will get will be used for school feeding programs and activities and for charitable institutions. We will also be having caravan tour for brand activation. With the caravan tour, we will be giving samples of our product. * Value This strategy focuses on how will the company reduce its price to be more competitive in the market. The first strategy is through competitive pricing.

This can be done by lowering the distribution costs. Thus, it will result to lower price of the product. Another one is through discounts. This will be applicable for bulk purchasing. The next strategy will be promo package. We will be having bundles wherein the powdered milk will be partnered in other products of Alaska. * Access In order to boost the sales, one way is to improve the distribution system and increase the number of distribution channels that can be used to distribute. In order for the product to be more accessible, our strategy will be through online marketing. The economies of scale will lessen.

Thus, the burden of distribution expense will not be carried by the consumers anymore. We will also be having free deliveries within Mega Manila. Lastly, we will be offering online services for loyal customers. The next strategy will be Direct Marketing. We will promote the powdered milk in different retail stores to make the product more accessible to all targeted locations. Next will be thru door-to-door selling. We will designate certain number of sellers to offer the powdered milk to household consumers. The problem of mobility of our product will be resolved with the use of carts to sell the product.

IX. Implementation Plan SOLUTION * Product Repackaging One way to capture the interest of target consumers is through creative packaging. We will be planning what will be the best packaging design and size for the powdered milk. Action| Department Involve| Time Frame| Budget| Planning and organizing a team to create a new packaging design| Marketing department representatives| 5 days1st week of December| P 50,000| Finalizing and approval of new packaging design plan| Product department | 1 day1st week of December| P 20,000| Pilot Testing| Marketing Department 1 week 2nd week of December| P700, 000| Reevaluation of the pilot testing| Operation Department | 1 week3rd week of December| P 50, 000| Start of repackaging process| Operation Department| 1 week4th week of December| P 2, 500, 000| Start of distribution on newly repackaged products| | 1st week of January| P 1,000, 000| * Product Development The Product development strategy will focus on adding nutritional value to the current product of AMC which will benefit the target consumers. With its improved nutritional facts, more health conscious parents will be attracted to purchase the product.

Thus, leading to an increase in sales for the company. Action/Activities| Department/Person involved| Time frame| Budget| Planning and generating ideas for the product development. | Research and Development Department| 1 monthJanuary| P 3, 000, 000| Product screening and evaluation. | Top Level Management and Marketing Department| 2 weeks1st to 2nd week of February| P 50, 000| Register/Issuance of License to Operate (LTO) and approval of Bureau of Food and Industry (BFAD)| Marketing Department| 3 months3rd week of February to 2nd week of May| P 60, 000| Producing sample products that will be used in product testing. Production Department| 1 week3rd week of May| P 1, 500, 000| Test Marketing. | Marketing Department| 1 week4th week of May| P 500, 000| Pilot testing| Marketing Department| 1 monthJune| P 2, 500, 000| Reviewing the results of the pilot testing. | Marketing and Research Department| 1 week1st week of July| P 80, 000| Producing product samples and actual products that will be distributed. | Production Department| 2 weeks2nd and 3rd week of July| P 3, 500, 000| Introducing the product to the market and distributing product samples. Marketing Department| 1 week4th week of July| P 1,500, 000| Distributing the actual products. | Marketing Department| 1st week of August| P 1, 000, 000| * Creating New Product Another strategy that we will be using is the creation of new product. AMC will create a new product that will satisfy the demands of the consumer. We will make another segment of powdered milk that will cover not only the children under the growth-gap years, but also other potential customer that consumes powdered milk in their daily basis.

The creation of new product will expand the target consumers of AMC and will also increase the potential buyers of the product. Thus, it will increase the sales of AMC. Action/Activities| Department/Person involved| Time frame| Budget| Planning and creating a research study about consumer demands. | Research and Development Department| 3 monthsJanuary-April| P 2, 500, 000| Reviewing research report and planning and brainstorming of ideas for the new product development. Marketing Department| 3 weeks1st week of May- 3rd week of May| P 90, 000| Creating the new product| Production Department| 1 month4th week of May- June| P 4,000,000| Product screening and evaluation. | Top Level Management and Marketing Department| 1 week1st week of July| P 50, 000| Register/Issuance of License to Operate (LTO) and approval of Bureau of Food and Industry (BFAD)| | 3 months2nd week of July to 2nd week of October| P 100, 000| Producing sample products that will be used in product testing. Marketing Department| 1 week4th week of October| P 3,000,000| Test Marketing. | Marketing Department| 1 week1st week of November| P 300, 000| Pilot testing| Marketing Department| 1 month2nd week of November to December| P 3, 000, 000| Reviewing the results of the pilot testing. | Marketing Department| 1 week2nd week of December| P 50, 000| Producing product samples and actual products that will be distributed. | Production Department| 2 weeks3rd and 4th week of December| P 4,000, 000| Introducing the product to the market and distributing product samples. Marketing Department| 1 week1st week of January| P 2, 000, 000| Distributing the actual products. | Marketing Department| 2nd week of January| P 500, 000| INFORMATION * ADVERTISING Transit Advertising Transit advertising will be done to create product awareness. We will be using different transportation medium to advertise. We will use taxis and buses to roam around the busy streets of the metro, While in the provinces; we will use stickers to be posted at the back of tricycles. Action| Department Involve| Time Frame| Budget|

Planning and Selecting of modes of transportation for transit advertising| Marketing department representative| 2 days1st week of February| P 20,000| Planning and making of the stickers for tricycles and jeepneys. | Marketing department representative| 3 days2nd week of February| P 1,200,000| Finalizing of transit advertising plan| Advertising department| 1 day2nd week of February| P 30,000| Meeting with representatives of the chosen Bus companies and jeepney operators| Marketing department representative| 2 days3rd week of February| P 30, 000| Start of transit advertising.

Coverage of transit advertisement(Bus, Tricycles, Jeepney)| | 1st week of March| P 5,000,000| * Television Advertising Almost all Filipino household owns a television set. TV advertising has the power to show and tell many people about the product, and actually demonstrates the benefits of acquiring it. Since they see how it works and how it is packaged, every time they see it they will be psychologically reminded of their desire to have it.

Action| Time Frame| Department Involve| Budget| Planning and Selecting of artists, celebrities and personalities to endorse the product in TV ad. | Marketing Department Representative| 1 week1st week of February| P 50,000| Meeting with managers of selected artists regarding payments, endorsement, terms of agreement| Marketing Department Representative| 1 week2nd week of February| P 150, 000| Contract signing and partial payment of the company to the selected endorsers. Company project head, Mangers and Endorsers| 1 day3rd week February| P 2,000,000| Meeting with representatives of advertising company regarding the execution of advertising plan. | Marketing Department Representative| 1 week1st week of March| P25, 000| Creation of story board by the chosen Advertising Agency| Advertising Agency| 6 weeks2nd week of March| P 2,000,000| Finalizing the advertising plan for television. | Advertising Department| 1 week1st week of May| P 50,000| Pilot airing of TV ad| Advertising Department| 1 week3rd week of May| P1, 500, 000| Coverage of

TV advertisement. (ABS-CBN 2, GMA 7 and TV5)| | 1st week of June- July1st week of October- December| P 30,000,000| SALES PROMOTIONS * Events and Sponsorship We will be holding events like concert for a cause, fun run and different fund raising activities from which we can promote the products of the company. The proceeds of the events will be used for school programs and activities for the betterment of children. Also we will accept application for sponsorship related to the objectives and goals of the company.

Action/Activities| Department/Person involved| Time frame| Budget| Review the sponsorship and exhibitor packages and related benefits| Marketing Department| 1 week1st week of October| P 30, 000| Determining and selecting which best potential event/ exhibit meets the company’s goal| Marketing Department| 1 week2nd week of October | P 50, 000| Meeting and coordinating with the event/exhibit organizers| Marketing Department| 2 weeks3rd week to 4th week of October| P 50, 000| Evaluation and approval for the sponsorship| Top Level Management | 1 week 1st week of November| P 50, 000| Preparing and allocating funds for the event that will be sponsor| Finance Department| 1 week2nd week of November| P 2, 000, 000| Capture data and measure results| Top Management| 1 week3rd week of November| P 30, 000| * Caravan This strategy will be focused on visiting different schools on the month of August, in line with the celebration of the Nutrition Month. There will be selected schools around the country that will be visited by our team and we will give powdered milk pouch samples to the students of the chosen school. It will contribute to the increase of brand awareness to our target consumers. Action| Department Involve| Time Frame| Budget| Planning and organizing a team to conduct the caravan. Marketing Department| 1 week1st week of June| P 30,000| Identifying the school that will be the scope of the caravan. | Marketing Department| 1 week2nd week of June| P 20,000| Contracting a certain bus company for the leasing of the bus and for the terms and conditions. | Marketing Department/ Finance Department| 1 day3rd week of June| P 500,000| Designing the bus that will be used in the caravan. | Advertising Department| 1 week4th week of June| P 50,000| Preparing the sample products that will be given out to the students of the chosen school. | Production Department| 2 weeks1st-2nd week of July| P 1,500,000| Start of the caravan. | Logistics Department| Whole month of August| P 150,000| * FUND RAISING

Action/Activities| Department/Person involved| Time frame| Budget| Developing goals and making fundraising plans| Marketing Department| 2 weeks1st week of June| P 70, 000| Searching for prospects that can help in the fundraising activities| Marketing Department| 2 weeks3rd to 4th week of June| P 50, 000| Searching for venue/facilities needed in the fundraising and other related materials | Marketing Department| 1 week1st week of July| P 40, 000| Estimating and allocation of fundraising programs costs| Finance Department| 1 week2nd week of July| P 30,000| Finalizing plans and evaluation of the programs and events| Top Level Management| 2 days3rd week of July| P 20, 000| Meeting and coordinating with organizers and other sponsors| Marketing Department| 1 week4th week of July| P 60,000| Fundraising Activity| | 1 month August| P 1,000,000| Program evaluation| Marketing department| 1 week1st week of September| P 50, 000| PRICING PRICING * Promotional Package ( Bundle ) Promotional package will attract more potential customers since they can avail discounts when they buy a bundle of AMC products in line with the Alaska Powdered Milk. Action| Department Involve| Time Frame| Budget| Planning and choosing of products that will be used for the promotional package. | Marketing department| 1 week2nd week of September| P 50,000| Meeting with the owners of the chosen supermarkets wherein the promotional package will be distributed. Marketing department| 1 day3rd week of September| P 20,000| Finalizing and creating the design of the packaging. | | 1 week4th week of September| P 1,000, 000| Distributing the promotional package. (SM supermarkets, Robinson’s Place supermarkets and Puregold)| | 1st week of October – Last week of December| P 800,000| * Minimizing Distribution Cost This strategy will be focusing on minimizing the distribution costs. Minimizing the cost will contribute to the aim of having a competitive pricing. By reducing the cost, we can also reduce the price. Action/Activities| Department/Person involved| Time frame| Budget| Reviewing distribution system. | Logistics Department| 1 week2nd week of January| P 10, 000| Brainstorming about the documents. Logistics Department| 1 week3rd week of January| P 15, 000| Planning and organizing Distribution system| Logistics Department| 3 weeks1st – 3rd week of February| P 30, 000| Eliminating unproductive labor and Reducing waste and material usage. | Top Management | 2 monthsMarch- April| P 100, 000| Improve equipment performance and space utilization through consolidation| Logistics Department| 2 months1st week of May-June| P 500 ,000| Implementation of the new distribution system| Logistics Department| 1st week of July| P 1, 000, 000| * Discounts As competition in the milk industry arises, several discounts and promos are coming out in the market. So we also plan to have discounts as one of our strategies to generate interest in getting customers to try Alaska milk products.

It will enable more target markets try Alaska Milk products within their budget capability. Action| Department Involve| Time Frame| Budget| Planning the discounts to be place in the market. | Marketing department representatives| 1 week1st week of December| P 10,000| Identify the target location/area to put the discounts. As well as, identifying how much discounts there would be. | Marketing department| 1 day2nd week of December| P 5,000| Consultation and evaluation of the discount plan. | Top Level Management/ Marketing department| 1 week3rd week of December| P 1, 500, 000| Allocation and budgeting of the discounts to be placed. | | 1st week of January| P 500, 000| ACCESS * Online Marketing

Online Marketing is one way of making Alaska milk products more accessibility in the market in which it less time consuming and more convenient to the wholesale target consumers. We will be offering the products only and they can acquire the products in wholesale through the internet. We will also be having free delivery service. Action| Department Involve| Time Frame| Budget| Planning and making a web layout design that will be used for the Online Marketing. | Advertising Department| 2 weeks1st-2nd week of January| P 100,000| Hiring an additional workforce that will maintain and respond to the customers demand/inquiries. | Human Resource Department| 1 month3rd week of January-3rd week of February| P 10,000| Launching of the Online Marketing Website of Alaska Milk Corporation. | March| P 200,000| * Direct Marketing This strategy is designed to increase the sales in which the sales force of Alaska Milk Corporation will conduct door-to-door selling in order to offer the products directly to the customers and generate sales. Action| Department Involve| Time Frame| Budget| Planning and organizing a team that will conduct the door-to-door selling. | Marketing Department| 1 week1st week of March| P 50,000| Identifying the location in which the door-to-door selling will be conducted. | Marketing department| 2 weeks2nd-3rd week of March| P50,000| Orienting and training the sales force about the door-to-door selling. | Human Resource

Department| 3 weeks4th week of March- 3rd week of April| P200,000| Preparing the materials and products that will be used in the door-to-door selling. | Production Management| 1 week4th week of April| P2,000,000| Start of the door-to-door selling. | | May| P500,000| X. Financial Summary XI. Contigencies 1. Fortuitous Events like natural calamities The company must have inventory management to assure the availability of supply in case of these events. 2. Contamination of raw materials The Company should have an alternative supplier to still meet the demand for their products. 3. Problems regarding pests and rodents Quality control should be practiced by the company to assure the safety and quality of the products. . Recession The Company must still be able to meet the demands of consumers by means of inventory management. 5. Change in Technological environment The Company should adapt to the advent of technology to be able to have better and faster production and service. XII. Appendix I Alaska Milk Corporation Corinthian Plaza, Paseo de Roxas Building, Makati City, Manila www. alaskamilk. com. ph National Dairy Authority www. nda. da. gov. ph National Statistics Office www. census. gov. ph www. nso. gov. ph Chanrobles Virtual Library www. chanrobles. com Department of Trade and Industry www. dti. gov. ph Ivory Qual Full Report AC Nielsen Research www. ielsen. com Projecy Hermes Final Report TNS Global Market Research www. tnsglobal. com Project Silk Report AC Nielsen Research www. nielsen. com Appendix ll Powdered Milk Offtake: June 2008 – Nov 2011 (In Tons) www. alaskamilk. com. ph Usage Performance: Cesar Montano for APM TNS Global Market Research www. tnsglobal. com How Is The Budget Spent? TNS Global Market Research www. tnsglobal. com Typical Grocery Budget TNS Global Market Research www. tnsglobal. com Weekly Purchase Volume of Powdered Milk AC Nielsen Research www. nielsen. com Quality Awareness AC Nielsen Research www. nielsen. com APPENDIX III AMC Annual Report www. alaskamilk. com. ph