1. Develop a new product strategy for
Plum-rose taking into account:
a. the importance of new product
strategy to the firm;
b. the
skill and resources available to the firm;
c. its area of core competency
and relative strength over competitors;
d. the
target market it is equipped to serve.
A. Developing
a new product strategy / importance of that: With increasing competition and limited space in the
dairy case it becomes inequitable to diversify the product lines. Only value
added products can sustain large premiums at the cash register with product
innovation the key to growth. Taking Plum-rose into consideration, they can
diversify into Myriad flavoured yogurts, instant cream caramel. As they are the
market the leaders it’d be relatively easy task to launch the new product for
Plum-rose
As the dairy market is growing well every year and has the
ability to sustain very strong growth there is a lot of opportunity for new
brands / products. Most Importantly along with products innovation, consumption
level when compared with other market gives plenty of room for growth. Beside
this product they can launch some yogurt for health conscious people which can
benefit the human immune system.
B. Skills/
Resources available to the firm:
As Plum-rose has a million dollar high technology
plant in Victoria compared to the outdated production lines or no automation of
that of the competitors. Beside that they’re the advantage of having the most
innovative packaging system. The system that provide a 50% saving to Plum-rose
on the costs of the cups. The automation serviced in reducing the additional labour costs
and production flexibility and unique packaging concepts. The distribution
system which is a crucial one was also innovative which allowed sufficient
shelf life.
C. Areas of core competency / relative
strength over competitors:
As briefed above the strength of plum-rose lies in the
following area.
Innovative packaging system which resulted in costs of
labour and on the cups and also allowing the unique twin pack concept.
Highly innovative distribution system which in
good servicing to super markets and most importantly allowing sufficient shelf
life for the product compared to the expensive distribution lines with shorter shelf
lives of the distributors.
Beside that Plum-rose have a psychological advantage
over the competitors as they are the market leaders in many brands which
allows them to launch a new product relatively with easy compared to that of
the competitors.
D. Target market: If we take the new product
as flavoured yoghurt, Creamed caramels ice-creams. the target market would be
the people using the dairy product. If plum-rose plans to launch a health
conscious yoghurt / product they can target middle aged people who are health conscious
and concerned about the caloric content/ ingredients. They can target the
customers who use the yoghurt for their new products.
Ques 2. Segment the dairy foods market and in
particular the yoghurt and diary food areas. Can you identify the target
markets for existing brands? Can you identify any opportunity for Plum-rose?
Yoghurt (Low fat / Calories)
Health conscious middle aged people,
Adult consumer with
healthy food image.
Diary food,
Ice cream
Generally all
people young school going plum-rose can probably
concentrate on flavored yogurt instant cream caramel
gourmet ice-cream and some unique diversification for
health conscious people.
Plum-rose
success has based on the product positioning good technology good distributions
and the lives it offered and of course by good and high level of consumer
promotion support
Success was based on the key factor product
highly the uniqueness the only product to contain the artificial sweetness nutria
sweet. And their success is based on their ability to grab quickly the key
issues which the competitor raised
Mubin Ul Haider
Mubin Ul Haider
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