Wednesday, December 11, 2019
Marketing for Managers Dairy Firm in Australia
Question: Describe about the Marketing for Managers of Dairy Firm in Australia. Answer: Introduction: Background of the company: Camel Milk of Victoria is an emerging dairy firm in Australia. It is one of the famous dairy beverages of Australia in which the production process is based on the elements of nature. At the very first time, it started its journey in Saudi Arabia. After that, it spreads its branches across the world. Now, the Victoria has been able to run this business successfully (Camel Milk Victoria, 2016). Products of the company: The Camel Milk of Victoria has different types of products. This organization launches variety of goods and makes differentiated products which would attract the customers towards them. Moreover, it also helps to sustain in the competitive and international market successfully. Camel Milk of Victoria launches camel milk soap which is effective and beneficial for sensitive skin. Moreover, it produces laundry powder which gently washes the clothes. On the other hand, one of it demandable product is lip balm which is made by the natural scents and oils of the nature. Apart from this, there are different types of camel milk soap which are of different shapes and sizes. On the other hand, the most important product is the camel milk which has a high demand in the international market. In addition, the camel milk Victoria cap is also an effective products which has a high demand to the consumers (Camel Milk Victoria, 2016). Vision and Mission of the company: The mission of Camel Milk of Victoria is to develop the quality of the products and maintain standard performance which would attract more investors and partners to invest on this organization. In this perspective, this organization targeted the Australian major markets along with the sub markets from which the higher amount of revenue can be generated. In addition, the transactions department needs to be taken into consideration through which the prospective opportunities of business and advantages can be achieved. On the other hand, this above stated organization focuses on providing the advance skills, technology, service and systems which would help to maintain the standard quality of the products and produce innovative items. As a result, the production efficiencies can be achieved through this above strategy. Furthermore, the higher amount of revenue and profit can be earned by implementing this effective mission of this organization (Camel Milk Victoria, 2016). In this perspective the vision of Camel Milk of Victoria is to achieve the effective business objective and goals by which the foster growth can be possible. The objectives and goals are set in such a manner that helps to cover the financial and budget allocation of this organization. Moreover, the innovative products and brands should be recognized and familiar to the loyal customers within a short time span. The vision and strategy should be clear to every employee who is working on the project related to Camel Milk of Victoria. Thus, with the help of new products and clear project vision profitability margin can be achieved with very short time line (Camel Milk Victoria, 2016). Current marketing objectives: The current marketing objectives are the concentration of price and quality of the goods and services. This effective objective would help to sustain in the competitive market. Moreover, the production of innovative and differentiated products is in great concern in respect to the marketing objectives of this organization. In addition, potential market entry strategies such as joint ventures and partnering in business can be taken into consideration as marketing objectives of this organization. Situation analysis: According to OFlynn et al., (2016), the term situation analysis indicates the process by which the managers can critically analyze the external and internal environment of the organization. With the help of this analysis, the capabilities, business environment, future expansion and customer base of this organization can be evaluated (Kekana, Hall, Motta Bewley, 2016). In this perspective, the above-stated organization of Camel Milk Victoria, situation analysis can be done with the help of SWOT analysis, evaluation of market demography and demand analysis, current competition and budget and positioning analysis. Market demography and demand analysis: The Camel Milk in Victoria is the only licensed dairy firm which is emerging, enterprising and entrepreneurial business unit in Australian economy. In this organization, milk is produced for the human consumption for all age group of the people. Apart from this, the milk can be used for the production of different types of chocolate which have a high demand in the international market (Flores Oseguera, 2013). In this perspective, Godiva James of the Middle East companies import milk from this organization for the production of chocolates. In addition, European countries, US and Japan are the target market of this organization from which a major amount of revenue is earned throughout the year. Furthermore, EICMP gets the facility to produce better quality and integrated type of camel milk in which per day production rate is 5000 liters approximately. The Europe market has a high demand on that. Moreover, in the words of Gildea (2012), with the help of consuming camel milk, the Diabet es patients of Type II, auto-immune patients and Hepatitis patients can fill better and it has some positive sign on that. Thus, these types of patients are included in the target market of this organization. As per the view of camel farmer of Queensland, it has a high demand in the Australian market as it provides the high value of milk. Though, the camel milk is very much expensive compare to any dairy milk, its demand is also in increasing condition. Due to the high production cost of this product, the sales figure is near about $32 per liter (ABC Rural, 2015). However, the market demand is high for new born babies. Thus, the price is not mattered in this case. As a result, most of the Australian business people want to start this business for earning higher amount of profit from the market (Garca-Posada Mora-Sanguinetti, 2015). SWOT analysis: The SWOT analysis of this above-stated company refers the advantage and disadvantage of this organization through the analysis of its marketing strategy (Bull et al., 2016). Strengths New and innovative product in the international market and foreign countries which would attract the customers towards them. The production procedure is best in terms of quality. Now, the entire world would mainly focus on the quality of the products instead of quantity (Jaber, Elkarmi, Alasis Kostas, 2015). Thus, its demand is high. The concerned marketing expertise helps this organization to sustain in the competitive market successfully. Efficient and effective production method. Major exporter in the international market. Strong and prospective growth of export in the trading market. Weakness The main drawback of this organization is the undifferentiated product. This is considered to be the barrier of attracting new customers towards them. The geographical boundary is not so much significant. This would create problem to deliver and distribution process (Chen, Kim Yamaguchi, 2014). Moreover, the expansion of business can be hampered for this reason. According to van Wijngaarden, Scholten van Wijk (2012), in the competitive market, the existing organizations have a pre set market brands and loyal customers. Thus, as the Camel Milk Victoria newly entered organization in the international market, so its customer base and reputation is not so much significant. Volatility in climate which may hamper the production process. Uncertainty in policy making which delay the export and import business. The Camel Milk of Victoria buy retail products but sale in the procedure of wholesale. Opportunities Market demand is high for this product instead of high production cost. Improved market strategies and objectives ensure to sustain in the competitive market successfully. By implementation of market entry strategies of mergers, joint ventures and strategic alliances, the higher amount of revenue and profits can be earned. This organization gives a tough competition by cost effective policy along with providing improved quality of products. Achievement of efficiencies in the production system. Management and higher authority bear and concentrate on the production risk of this company. Threats Due to high price of products, the Camel Milk of Victoria can lose the market demand of the products along with loyal customers. This is not desirable for an organization. The high price of products is an important barrier for not sustaining the customer base in the international market. Unsatisfactory geographical boundary adds the disadvantage of delivery and distribution system. This would lead to contraction of selling market in the international economy. High price of inputs which raise the price of the products. Climate change. Lack of protectionism from rival companies in the international markets. Table 1: SWOT analysis of Camel Milk of Victoria Source: (As created by author) Current competition: It is known that Australia is a famous country for producing dairy products through worldwide. There are 6400 dairy firms across the Australian economy in the important regions such as Victoria, New south Wales, Tasmania, Western Australia, South Australia and Queensland. These areas are the major competitors of Camel Milk of Victoria. However, due to the different types of production process, strategies and innovativeness of goods adds the more competition between these industries. Figure 1: Trend of production in Australian Dairy firms Source: (Financial Review, 2015) The above data shows the production of milk by the Australian dairy firms throughout the year. As per this statistics, the trend is positive and significant. Thus, these Australian firms are the main competitors of Camel Milk of Victoria. Budget, sales and positioning analysis: The budget of this organization is justified for expansion in the international market. The sales figure of this organization is highly significant and ensures the higher rate of return from it. By selling the innovative items in the international market, this organization earns a higher amount of profit. Moreover, the position of this organization is perfect to run the business successfully. Victoria is one of the developed and important city of Australia. Thus, this market position is potential to get success in the business. Marketing promotion objectives and strategies: In the words of Lin, Jun, Hu Huang (2015), to get success in the competitive market, the organization needs to set some effective promotional objectives. With the help of these promotional objectives, the organization can be able to arrange the efficient and relevant strategies which would ensure the foster growth of the company (Waldman, 2013). In this perspective, the Camel Milk of Victoria set some effective objectives which would ensure the expansion of this organization in the international market. The main objective of this organization is to maintain the quality and standard of the products. After that, the concentration is goes on the price of the products. The price of the products set in such a manner that it help to sustain in the competitive market along with attracting more customers towards them. In this context, one of the main objectives is the production of the differentiated and innovative types of goods, which would attract new consumers towards them. According to DeVaro Kauhanen (2016), the promotional strategies are very much important to expand the business growth in the international market. With the help of effective promotional and advertisement strategy, the organization can be able to catch the peoples mind easily (Glanz, Bader Iyer, 2012). In this perspective, the Camel Milk Victoria employs a unique promotional strategy through which the good reputation can be maintained in the international market. This above-stated organization mainly concentrates on the standard performance and quality of the products which would help to attract the customers towards them. Moreover, in the words of Galician (2013), the changes in price of the products are an effective promotional strategy which adds extra benefits to consume more amounts by the customers. In this context, the Camel Milk organization of Victoria set the lower level of price from the other rival companies related to this type of production. As a result, it would help to sustain in the competitive market successfully. Apart from this, the innovation in the product has been done by this company. As commented by Czinkota Ronkainen (2013), the differentiated products and innovative goods can catch the entire market easily. Thus, the Camel Milk of Victoria implements this strategy. By implementing this strategy, this above-concerned organization produces innovative and differentiated products which not only uses for consumption of babies, but also cures many diseases (Hui, Inman, Huang Suher, 2013). As a result, the demand of this product increases. On the other hand, for effective promotional of this organization and goods, this company takes the help of advertisement. With the help of advertisement strategy, the new, innovative and differentiated products can be accustomed by the people. By knowing the advantage of this product, the customers can motivate to buy these products which would help to increase the profit of this organization. In addition, the good reputation can be maintained along wit h setting the loyal customer base. Media and budget allocation: As opined by Weintraub Litwinka (2013), the impact of social media for expansion of a business is important factors. With the help of social media, the organization can be able to catch the peoples mind properly (Joardar, Kostova Wu, 2014). In this perspective, the Camel Milk of Victoria uses the social media for promotional purposes. This above-stated organization uses the social networking site Facebook for promotional and advertisement purpose. From this social networking site, people can acknowledge with the products of this organization. As a result, the sales of this organization increase. On the other hand, the impact of social media is positive and significant in this context. With the help of social media, this emerging business unit can be a known face to the consumers. Moreover, it would help to set the loyal customer base which would ensure to earn higher amount of profit (Vorvoreanu, Sears Johri, 2015). Year 0 1 2 3 4 5 CASH INFLOWS Cash from Sales 500,000 700,000 900,000 1,200,000 1,800,000 Directors loans 145,000 Share capital 60,000 TOTAL CASH INFLOW 205,000 500,000 700,000 900,000 1,200,000 1,800,000 CASH OUTFLOWS Payments for materials 100,000 125,000 156,000 200,000 300,000 Premises (rent, rates) 0 30,000 35,000 35,000 50,000 50,000 Wages and salaries 0 100,000 100,000 120,000 130,000 150,000 General expenses 0 20,000 25,000 28,000 32,000 35,000 Interest and bank charges payable 0 2,900 2,900 2,900 2,900 2,900 Lease payments 0 0 0 0 0 Corporation Tax 165,255 137,009 197,912 Market survey costs 2,500 Other preliminary expenses 4,000 capital expenditure Loan repayments 31,900 31,900 31,900 31,900 31,900 Dividends 0 0 0 0 TOTAL CASH OUTFLOWS 6,500 284,800 319,800 539,055 583,809 767,712 Cash flow summary NET CASH FLOW FOR PERIOD 198,500 215,200 380,200 360,945 616,191 1,032,288 OPENING CASH BALANCE 198,50 413,70 793,90 1,154,84 1,771,03 CLOSING CASH BALANCE 198,500 413,700 793,900 1,154,845 1,771,036 2,803,324 Table 2: The current table shows the forecasted cash flow statement for Camel Milk for five years (Source: As created by author) Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Long-Term Assets: Leasehold Improvement 35,000 42,000 45,000 48,000 50,000 Accumulated Depreciation 3,500 8,500 10,500 11,500 12,500 Total Long-Term Assets 38,500 50,500 55,500 59,500 62,500 Current Assets: Cash 29,800 19,700 3,300 22,800 24,000 Accounts Receivable 12,000 15,000 19,000 21,000 23,000 Inventory 53,000 64,000 75,000 95,000 120,000 Prepaid Rent 2,200 2,500 2,800 3,500 4,500 Total Current Assets 97,000 101,200 100,100 142,300 171,500 Total Assets 135,500 151,700 155,600 201,800 234,000 Long-term liabilities 55,000 58,000 62,000 65,000 68,000 Current Liabilities: Unearned Income 17,000 15,000 17,000 18,000 20,000 Accrued Expenses 1,500 1,700 1,600 1,800 2,100 Total Current Liabilities 18,500 16,700 18,600 19,800 22,100 Total liabilities 73,500 74,700 80,600 84,800 90,100 Owner's equity: Retained Earnings 50,000 52,000 51,000 62,000 78,000 Common stock 12,000 25,000 24,000 55,000 65,900 Total Owner's Equity 62,000 77,000 75,000 117,000 143,900 Total Liabilities and Owner's equity 135,500 151,700 155,600 201,800 234,000 Table 3: The above table shows the forecasted balance sheet statement for Camel Milk for five years (Source: As created by author) From this above calculation, the hypothetical budget allocation is made with the help of forecasted balance sheet and cash flow statement of this organization. Moreover, in this perspective, the expected profit and loss of Camel Milk of Victoria can be presented in the following manner. Years 1 2 3 4 5 Revenue 500,000 700,000 900,000 1,200,000 1,800,000 Cost of sales 100,000 125,000 156,000 200,000 300,000 Gross profit 400,000 575,000 744,000 1,000,000 1,500,000 Expenses/overheads Premises (rent, rates) 0 30,000 35,000 35,000 50,000 Wages and salaries 100,000 100,000 120,000 130,000 150,000 General expenses 20,000 25,000 28,000 32,000 35,000 Interest and bank charges payable 2,900 2,900 2,900 2,900 2,900 Lease payments 0 0 0 0 0 Depreciation 14600 12080 10064 8451 7161 Other expenses 6,500 Total expenses/overheads 144,000 169,980 195,964 208,351 245,061 Profit before tax 256,000 405,020 548,036 791,649 1,254,939 Tax @25% 165,255 137,009 197,912 313,735 Profit after tax 256,000 239,765 411,027 593,737 941,204 Dividends 0 0 0 0 Transfer to reserves 256,000 239,765 411,027 593,737 941,204 Table 4: The table shows the forecasted profit and loss of Camel Milk for 5 years (Source: As created by author) Conclusion and recommendation: The above analysis indicates the fact that Camel Milk of Victoria has a prospective growth in near future in the international market. The brief analysis of market demand, sales position, market demography and current competition of this organization, the strengths, weakness, opportunities and threats can be identified. As a result, the effective measures can be taken for correcting this adverse situation. In this perspective, the hypothetical forecasted budget is made for this organization. In this context, to sustain in the competitive market successfully, this organization needs to concentrates on the improvement of production procedure along with cost effective measure. With the implementation of efficient production technology, the cost of production can be minimized. As a result, the price of the products can be shortened which would enhance the competitive power in the international market. Thus, by following this effective marketing strategy and suggestions, this organization can be able to achieve foster growth in the international market. Reference list: Aerem's dairy deal is 'comical' say farmers. 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