Business Plan For The Mead Johnson Nutritional Company Marketing Essay

Business Plan For The Mead Johnson nutritionary community commercialiseing EssayAn action re calculate was sponsored by Mead Johnson in collaboration with NGO to access its efficacy in terms of emergence weight of cossets of weaning season in urban slums of Dhaka urban center capital of Bangladesh. The findings of the study states thatInfants weaned on ENFAMIL had much weight and space stumbleed compared to control baseMothers attitude and infants acceptation of ENFAMIL was satisfactory.Storage pests (insects) were found on in one batch of weaning bevyets.Now Mead Johnson wants to access the acceptance of ENFAMIL in terms of its impairment, packaging, taste/ persona among midsection and overthrow optic come apart families.In the context of the current maturity of the play offet and the st ordaingical options available, it is offshoot necessary to assess whether the company is trade the right harvest-tide conformity the point of view of the consumers. Hence eva luation of the convergence is necessary.The circumstantial impersonals of the research are to assess consumer evaluation in the broad areas of packagingProduct tollThe end documental is to identify areas that strike to be strengthened and also the existing strength areas that stinkpot be exploited. loot up summaryStart-up costs of Mead Johnson consist of legal costs, research, Manpower, marketing/ forward motion crossroad is to fund start-up expenses with Companys reserved fund, establishifyer investments and a long-term barter loan.Product Testing- ENFAMILResearch Bud tieItemUnitCost totality (Taka) try out merchandise818150.00122,700.00Consultancy fee28,500.0017,000.00Team leader and light upon members88,000.0064,000.00 champaign practise Supervisor cum information look Controllers165,000.0080,000.00selective information Collectors403,000.00120,000.00 sketch Coordinator27,000.0014,000.00Controller of Field Operation46,000.0024,000.00Focus group discussion64300.0019 ,200.00In-depth interrogate20500.0010,000.00Data Analyst29,000.0018,000.00Daily allowance40120.004,800.00Particulars2,000.002,000.00 feeling of Data Collection Instrument5,000.005,000.00Stationary4,550.004,550.00Photocopying and binding of reports2,750.002,750.00Pre- testing of Data Collection instrument3,000.003,000.00Total expenditure511,000.00Source of Capital The beginning of capital is as followsFunded by company 45% 270000.00Owners investment- 20% 120000.00 im array from Bank- 35% 2 cytosine00.00Total Capital 600000.00RESOURCES REQUIREMENTS FOR OPERATIONPhysical resourcesThe physical resources of this put allow for be include all essentials office equipments such as, computers, telephone and fax, internet connection for data transfer, data collecting equipment. The costs of the physical resources Taka 140,000.00 ( 1320.00)PHYSICAL RESOURCESUNITTOTAL COSTSSample harvest-tide818122700.00Printing of Data Collection Instrument25000.00Particular102000.00Pre-testing of Dat a Collection instrument53000.00Stationary7300.00Total140,000.00Human ResourcesPOSITIONS progeny OF EMPLOYEESAdministrative Assistant1Team loss leader and key members8Supervisors cum Quality controllers16Data collector40 playing area Coordinator2Controller of Field Operation4TOTAL71Initially at that place will be a Team Leader who is responsible for the operational work. One will be an administrative protagonist who will deal with all the paper work and who will apply care of the administration duties. The roosting people will be shared into few groups. After taking all the necessary information members of the each group will forward these information to team leader to bear upon the activities.Financial ResourcesThe funding and investments for this project will be received from the companys own fund, owners personal investment and loan from the Banks. Research budget with take harvest-tides sign expenses is taka 511,000.00 ( 4820.00)RESEARCH DESIGNThe research purport is e ssentially a imagination cum usage test. The details are discussed in turn.New harvest-tide development The development of original productions, product improvements, product modifications, and mod brands with the firms own RD efforts.The study criteria of sassy development are written infra with a short descriptionIdea generationThe systematic search for new product ideas-Idea screeningScreening new product ideas in order to spot faithful ideas and drop poor ones as soon as possible.Product conceptA detailed transformation of the new product idea started in meaningful consumer terms.Concept testingTesting new product concepts with group of target consumers to find come to the fore if the concepts live strong consumer appeal.Product development is a major part on marketing. The RD of any company does the mainly product development. In Bangladesh Mead Johnson weent have any RD departments. Mother company of Mead Johnson well known non- brass social disposal have innova ted the product according to the consumer need, and analyzing the subdivision, culture and the other part of marketing.Study DesignWe have conducted a phratry-to-house random survey development structured questionnaires through personal interview. In our case Monadic test normal as followed i.e. each respondent would tried one test product only. Prior to the main quantitative survey qualitative exploration was through through Focus Group Discussions (FGD). The opinions were quiet in undermentioned place in the main surveySelection of RespondentsDiscussion on need need gaps on weaning foodIntroduction to concept reactions therefromProduct placementReactions to productReaction to priceMETHODOLOGYThe room proposed a house-to-house random survey to be conducted using a structuredquestionnaire through personal interview. In this case Monadic test design would be followed i.e. each respondent would try one test product only. Hence, we propose to place the product to the respond ents for a stream of 15 eld after which their opinion on the product will be gathered. During this period they will use the product as suggested. Prior to doing the quantitative product test 8 Focus Group Discussion (FGD) will be conducted to have an in-depth understanding of the choice factors and to generate consumer vocabulary for the same.Measuring tools to employFor rating on choice factors an 11-point scale (0-10) was used. Consumers will give mark out of ten. This scale has equality of interval properly and is reliable. This is also hand-to-hand to reality because consumers are familiar with this scale and arsehole easily rate on any factor.Sampling UniverseConsidering the geographic spread the Company has proposed that the following towns would be covered in the study.Dhaka( Capital city )Chittagong rangpurSyhlettIn sum, the sampling universe for this study is all households having infants aged 4 to 10 months belonging to socio-economic classes B and C (appendix) in the selected towns.Sample size of itQualitative (FGD)QuantitativeMetro Dhaka2156Large Chittagong285MediumRajshahi284Small Syhlett284Total8409The allocation of sample size across the selected towns was through with(p) on the origination of sampling error ranges and also of heterogeneity of households indoors the town classes. For larger towns higher numbers of samples were covered to capture its innovation/ heterogeneity. In all there were a total of 8 FGDs and after 409 respondents for quantitative study. Standard error ranges for different percentage estimates at the 95 % direct of confidence ground on simple random sample size.Sampling TechniqueWe followed a multi stage, stratified sampling method to condition representative samples. Within a town, households were selected by the Random Route technique (Cluster sampling). In each cluster/ area (smallest urban unit) 5 households were covered. olibanum a total of 17-31 clusters/ areas were covered in each town, depending on s ampling size.Target GroupAs mentioned, ENFAMIL targets the place class and lower essence class consumers. Middle and lower middle class consumers are more concentrated in the urban towns than in the semi-urban towns or rural villages and accordingly urban target consumers are more accessible to the marketers for a new brand. Therefore, this study would be limited to urban towns only. Hence, primary target segment for ENFAMIL is all the households of the urban towns having at least one peasant between 5 to 10 months age and belonging to the middle and lower middle class.Time Plan for the StudyWeeksActivities123456Sample subjectPreparatory Work for Sample SurveyInstrumental DevelopmentField Briefing, preparation Field Work For Sampling SurveyData Entry Analysis for Sample SurveyreportageFocus Group DiscussionDesk Research for the program Training ModulePreparatory WorkCollection of Reports, documents and historical DataReportingDraft ReportFinal ReportHead of the householdThe compend of the respondents is given center-wise and on the basis of socio-economic mixture. Standard market research classification of income is provided below.Center randomness mature of the Child (In Month)DhakaChittagongRajshahiSyhlettSEC BSEC C5-8 Months8+ MonthTotalTotal1568584841882212181914091. Less than Tk 300015%9%13%4%4%17%12%10%11%2. Tk 3001-400021%20%35%14%12%30%23%21%22%3. Tk 4001-500018%26%31%26%20%27%22%26%24%4. Tk 5001-600011%14%6%19%13%11%10%15%12%5. Tk 6001-700010%8%6%13%14%5%9%10%10%6. Tk 7001-80006%5%6%4%9%2%5%6%5%7. Above Tk 800019%18%4%20%27%6%20%11%16%Mean Score(In Taka)71996682.948649.46567.98422.54834.46968.55930.46483.7 plank Monthly disposable incomeIn majority of the market research projects we strike disposable monthly family income (DMFI). This is the amount of total earning of the family left after give house rent, if any. This is a very good index of purchasing power. unneeded to mention, average DMFI of the residents of Dhaka is more. And, qui te obviously respondents belonging to SEC B had higher DMFI than their SEC C counterparts.However in all the centers, veto Dhaka, majority of respondents live in own houses especially at Chittagong and Syhlett (around 76-87%). In Dhaka 77% of the respondents live in rented houses paying an average house rent of Taka 574 per month.Family sizing Number of ChildrenThe respondents had standard family size in around cases ranging from 4.7 to 6.2. In other words the average family size was 5.3.The following bow will give an idea or so the number of children the respondents have.Table Family SizeCenterSECAge of the Child (In Month)DhakaChittagongRajshahiSyhlettSEC BSEC C5-8 Months8+ MonthTotalTotal156858484188221218191409Mean Score4.75.956.25.65.15.45.35.3List of Children boyGirlList of ChildrenBoyGirl05 Months16%10%08 historic period12%12%06 Months13%17%09 historic period8%7%07 Months12%13%10 long time6%8%08 Months10%15%11 old age3%609 Months18%17%12 long time6%4%10 Months30%28%13 Years2%1%01 Year*%*%14 Years1%3%02 Years4%3%15 Years2%1%03 Years6%9%16 Years1%-%04 Years11%9%17 Years-%*%05 Years12%16%18 Years*%-%06 Years11%13%07 Years4%6%Total207202On an average the respondents have two children. Among the 409 respondents interviewed 298 had children below 8 months and 191 had children higher up 8 months on the basis of which they were selected.The Respondent99% of the respondents were housewives. The respondents were primarily young and 65% of them belong to the age group of 18 to 25 years whereas rests are between 26 to 35 years.able Occupation of the RespondentCenterSECAge of the Child (In Month)DhakaChittagongRajshahiSyhlettSEC BSEC C5-8 Months8+ MonthTotalTotal1568584841882212181914091. homemaker99%100%98%100%98%100%99%99%99%2. Student-%1%-%2%2%-%-%2%1%3. Part time subscriber line-%1%2%1%2%*%1%1%1%4. Full time job1%2%2%2%2%1%2%1%2%5. Others1%1%1%1%2%*%*%2%1%INFORMATION AREACONCEPTPACKAGING harvest-festivalstatus motive needs.overall measures-Likeabilit yUniqueness-Nutrition-Modernity- boilers suit rating-AttractivenessAttractiveness-Physical demeanor (looks, granularity, etc.)-Dynamism- goal to try-UniquenessPack size-Preparation convenience (easy to mix with water, does not form lump, etc.)-Friendliness-Intention to use officially-CredibilityPackshape/Graphics/Design/ color-Taste, aroma, etc-AgeInformation literary works/information-Storage convenience-TrustworthinessOverall acceptabilityAbility to preserve sum-Longevity, not forming lump-PremiumUsefulness of information given on the packInsect growth, etc.-SophisticatedCredibility of informationCan be combine with milk, soup, etc.-Natural/freshUsage ExperienceMajority of the respondents (61%) had consumed al closely twain the big moneys given for usage. Some 27% had consumed at least one packet in the 15 days, the time given to them to try the product. During this time phase, on average the product was given two times daily to the child mixed with only water (about average of 253ml) in most cases (69%). most 26% of the mothers had also mixed sugar or other items with ENFAMIL. yearning water was preferred most by the respondents (79%), whereas 14% used tepid water.DIAGNOSTIC OF PERFORMANCEIt is clear that the respondents had adequate product experience. Their views on the product therefore are meaningful. We first examine the overall performance indicators of the product. For this we shall make iii indicators- Intention to regular use, Intention to try, and overall rating. Of these three, intention to regular use is the strongest indicator as it expresses the probability of clouding and using the product. Intention to try comes next. And overall rating is the third most burning(prenominal) indicator as it signifies how much the product is likedSpontaneous ReactionOn exposure to the concept the respondents were asked to express their feeling about good or bad. The major reactions are shown belowCenterSEC%ReactionsDhakaChittagongRajshahiSyhlettSE C BSEC CTOTALChilds wellness will remain good if fed along with breast milk4145427363435Liked the publications which states this is necessary along with breast milk2512138112116Child will get nutrition29667131715Has Vitamin1712158141414Literature gives Impression that it will be a quality product32241712910Balanced diet137849109Helps in rapid1016649109Base156858484188221409At a top of mind level, childs health has registered most. It is understood that if fed along side continued breast-feeding ENFAMIL would ensure good health. It nutrition, being balanced diet, and helping in babys growth have also registered moderately.Likes and dislikes of the conceptThe respondents were also asked to describe what they liked and disliked of the concept. Only about 2% had any dislike while all had one or more likes of the concept. The major likings are picture of the baby (70%), literature on childs food requirement (26%), the packet (21%).MARKETING MIXAttempting to target comparatively high-pri ced offerings to rural families on the margins of the cash economy, or to the poorest of the urban poor, is only if bad marketing. But Mead Johnson developed this new brand of ENFAMIL so that middle class families can purchase this product at a lower price but meet nutritional demands for infants. The next section will emphasize the 4Ps of ENFAMILProductNature of product ENFAMIL milk-based, lactose-free, iron fortified infant formula for first 12 months.Product Features The only lactose-free, milk-based formula, which includes LIPIL, a uncommon blend of DHA and ARA Lactose-free and sucrose-free No sucrose (table sugar)Nutrition valueNUTRIENTS(Normal Dilution)Per 100 Calories(5 fl oz)Protein, g2.1Fat, g5.3Carbohydrate, g10.9Water, g134Linoleic acid, mg860VitaminsVitamin A, IU300Vitamin D, IU60Vitamin E, IU2Vitamin K, g8Thiamin (Vitamin B1), g80vitamin G (Vitamin B2), g140Vitamin B6, g60Vitamin B12, g0.3Niacin, g super CFolic acid (Folacin), g16Pantothenic acid, g500Biotin, g3Vitami n C (Ascorbic acid), mg12Choline, mg12Inositol, mg6MineralsCalcium, mg82Phosphorus, mg55Magnesium, mg8Iron, mg1.8Zinc, mg1Manganese, g15Copper, g75Iodine, g15Selenium, g2.8Sodium, mg30Potassium, mg110Chloride, mg67Core value the product is giving to its customerEnfamil the first infant formula in all over the globe, which contains the nutrients DHA (docosahexaenoic acid) and ARA (arachidonic acid). similarly naturally found in breast milk, DHA and ARA have been clinically shown to support infant brain and eye development.Performance of the PackLikes and dislikes, property rating, and overall rating of the pack are examined below to assess the packs acceptability.Overall rating The rating on the pack on overall was collected on a 7.0-point scale. The ratings are as below. %allVery worthless to moderate 1Good 2Very Good 36Excellent 1Mean Score (1-7) 6.6The pack is excellent on overall consideration. Hence it is quite obvious that it would have few dislikes.PricePrior to exposure to the stipulated price, an effort was made to identify the price most suitable for the brand, via Psychological Monetary Demand (PMD) technique. The respondents were offered a range of price from Tk. 100 to 200 with and increment of Tk. 5, and asked above which price, and at which price or below they would not purchase the brand. The analysis provides the counterbalance of the target group uncoerced to purchase ENFAMIL at each price level and match pecuniary demand. For a marketer profit maximization is likely to give at the highest level of monetary demand. The analysis depicts that maximum monetary deduce can be ensured if the price of ENFAMIL is at Tk. 75. Above this price symmetry of buyers and monetary value of sales fall drastically. On the other hand, if the objective is to maximize number of users, one can reduce the price worst to the level of Tk. 60. Beyond this, interested buyers will be fewer.PriceMarket price lineENFAMIL TK 75TIMEFigure market perspicacity strat egyDemand traffic patternAccording to the market dynamics, the demand for consumable products depends on the price factor along with other related factors i.e. test and preferences, character of the product, and economic condition of the target customers. After analyzing the market pattern and relationship of price to quantity through sample survey questionnaire the following demand pattern was observed. The analysis provides the proportion of the target group willing to purchase ENFAMIL at each price level and corresponding monetary demand. For a marketer profit maximization is likely to occur at the highest level of monetary demand.Proportion of consumers Monetary DemandPrice (%)willing to buy (Assuming pop=100)Tk.50 67 3337Tk.55 76 4135Tk.60 83 4958Tk.65 83 5419Tk.70 82 5716Tk.75 82 6125Tk.80 69 5535Tk.85 60 5071Tk.90 46 4137Tk.95 42 4018Tk.100 17 1711Tk.105 15 1540Tk.110 10 1103Tk.115 9 1012Tk.120 0 0The analysis depicts that maximum monetary gain can be ensured if the price of ENFAMIL is at Taka 75.00 Above this price proportion of buyers and monetary value of sales fall drastically. On the other hand, if the objective is to maximize number of users, one can reduce the price crush to the level of Taka. 60.00 Beyond this, interested buyers will be fewer. Thus it can be concluded that the demand for baby food ENFAMIL is elastic.Place The nature of distribution of the product and the market accessibility also plays a major role after generating awareness of the product among the target customers. If the customers dont have the product at the right place at the right moment than there exists the possibility that those customers will switch to another brand and have acidic experience while purchasing the product . To reverse the effect of the above situation the company should use both direct marketing and corroborative marketing impart to promote ENFAMIL. For distributing ENFAMIL the company should use following methods makerWholesalerRetailersCustomersMa nufacturerCustomersManufacturerPharmacyCustomers1)2)3)Figure Distribution channelsPromotionThe range of promotional activities available to todays manufacturer or companies can be overwhelming. The promotional action plan for ENFAMIL is listed below.Advertising Newspaper, Billboard, Electronic media receiving set TVPublic relation- Social activities, Sponsorship, Awareness campaign about the benefits of baby food productDirect marketing- Promoting via doctors through medical representativesENFAMIL is very new in the market it requires specific events such as the launch of an advertising campaign or a press conference to announce the entering of the new product. In other cases promotional activities necessarily be take for the NGO to carry out in different local government and private hospitals, clinics, pharmacies and aware rural, urban middle to lower middle class families about the product. In other cases promotional activities involve putting mingled elements into place for the long term, such as training salespeople for directing marketing to promote this product via doctors through medical representatives. In all cases, it is important to integrate companys promotion efforts doing so can decrease costs and increase communication effectiveness.SALES FORCASTThe sales forecast has been done in three levels. First level depicts optimistic forecast if all other factors alter sales are favorable. The second level of sales forecast is based on normal ongoing condition of the economy and the next level of forecast is done based on the pessimistic approach.YEARLY ESTIMATED engagePrice remains fixed as the product is price elastics metre demanded (units in hundreds)Economic conditionPortion of Expected customer (assumption) gross sales forecast (Units in hundreds )TK 75.006125Optimistic90%5512TK 75.006125Normal75%4593TK 75.00