Although the market size of yoghurt industry has been growing, and consumers’ need to yoghurt is also raised, the profit of the company has been fallen since 2002. The market share has been dropped 2% from 2002 to 2003. The reason for the problem cause is the increase of competitors’ market shares. Competitors are expanding because of the launch new taste and new package products. Although the NZDF has launched new flavour yoghurts but the package of the yoghurt products have never been changed. The solution to the problem is launching a new package yoghurt product – Squeeze pack yoghurt. The new packaging of yoghurt products will give the company a competitive advantage. The company will gain benefit while the new convenient design of the new package benefits the customers.
The objectives of this plan are: Achieve total yoghurt sales revenue of $155,085,500 in 2006, with represents a 10% increase per year with in next three years from 2004. Achieve total yoghurt package sales of 60,068,300 packs in 2006, with a average 5% increase per year with in next three years from 2004. Achieve 65% market share in the total yoghurt market; with a 3% increase per year with in the next 3 years start from 2004.
The company is also going to spend a large amount of money on media support to the squeeze pack yoghurt. The company is also going to distribute the product both in supermarket, department store, and specialty stores. This plan also details how this can be achieved with an investment in personal and resources, and how the plan will be monitored to complete. 2 Situation Analysis New Zealand Dairy Food (NZDF) is New Zealand’s largest dairy food company. The company own many famous brands such as: Anchors, Fresh n Fruity, SM Calci Yum and so on. NZDF holds the largest market share in yoghurt and dairy food industry.
The overall market size is expanding because of the growth of total New Zealand population. Moreover, customer needs to yoghurt and dairy food is also enhancing. The reason for it is the increase of consumer’s needs of healthy food. Yoghurt and dairy food are considered healthy food because they contain lots of nutrition. Although, the market size is expanding and customer’s need to yoghurt and dairy food is increasing, from 2002 the company started to make loss of sales and market share. According to this situation, the company has launched several new taste products. However, other companies have also launched new taste products.
However, they also launched new package products, such as spoon pack yoghurt products. Therefore, there is a good opportunity for NZDF to launch a new package product as well – Squeeze pack yoghurt. 2.1.1 Demographic The New Zealand population is stable growing. In 2003, New Zealand population has passed 4 million. Much of the growth has been driven by new immigrants and returning migrants. The growth of the population will bring to growth of demand of yoghurt and dairy food products (FMCG, 2004).
2.1.2 Economic Issues The New Zealand dollars continues to grow. The strong appreciation of New Zealand dollar is benefiting New Zealand’s importing. To yoghurt and dairy food industry, the cost of importing of raw material is reduced. 2.1.3 Cultural and social consideration People’s health-consciousness is increasing growth. Taste is becoming key drivers, when they make buying decisions. Consumers are increasingly desiring and looking for new flavour and texture experiences (Grocers review, 2004).