Asida Maize Flour Meal MAREKETING STRATEGY
Dangote Group: PEST Analysis 4 SEGMENTATION, TARGETING, AND POSITIONING ANALYSIS 6 2. Segmentation 6 2. Targeting 6 2. Positioning 7 MARKETING AND OPERATIONAL STRATEGY 7 3. Current Operational and Marketing Strategy 7 3. Integration of Marketing and Operations 13 CONCLUSION 13 5. Conclusion 13 Asida Maize Flour Meal 1. Introduction Companies like Dangote Group drive the Nigerian economy. They produce and manufacture quality products that improve the lives of the general public. The companies are also source of employment to many people. Today, product range include of steel, cement, telecommunications, food and beverages as well as product variety within other market and industries. Due to the nature of new product introduction into the market, the report will narrow to the food and beverage section of the business. Following the Financial Report (2010, 4) of the 2010 business year, Dangote Group earned after tax profit of N11, 282,200 and recorded a turnover of N89, 980, 500.
Following strong brand image and good reputation established within the region, together with huge profits across various industries and brands, the company is in a pole position to introduce Asida within its product range in the food and beverage sector. Asida is food made from grains especially red millet, corn, or sorghum. Grains such as maize, sorghum and millet are easy to grow and are resistant harsh weather conditions (Phillips, 2006, 38). According to (Iken & Amusa, 2004, 304), new technologies for genetic modification have enhanced the ability of the plants to be resilient to harsh environmental conditions and survive under difficult conditions and terrain. Applying the strong brand image within the food and beverage sector, Dangote Groupis in good position to introduce this grain product to the general public and employ the current packaging and production facilities to purify the product and supply it to the wholesalers and retailers.
The existing economic conditions facing the nation might favor the product launch because its cost effective nature will provide a cheaper option to carbohydrates for customers who find it hard to meet their nutritional needs with prevailing budget constraints. The availability of good infrastructure, media tools such as television and radios and good production technology will boost the market sale. Majority of the population in Nigeria earn low average income. As reported by Nations Encyclopedia (2011, 2), in 2010, majority of the Nigerian population (as many as 45%) were living below poverty lines. It is thus clear that there’s a huge proportion of the food and beverage market that demand affordable products that are more filling , and have long shelf time. The introduction of this product to the Nigerian market will focus at this specific market segment within the food and beverage industry.
Targeting The company will focus its efforts on offering a cost effective product and utilize a promotional campaign that matches the types of customers within the market so as to target the lower living standards measure levels within the region. According to Keegan & Schlegelmilch (2001, 27), the manner in which the brand will enter the new market will depend on the available financial resources and amount of resources the company is willing to expend on the diversification process. In keeping with Ansoff’s matrix, the launch of a new product involves high level of risks. This will demand careful operational and marketing plans so as to minimize the company risks and contain the costs. Recognized Risks Gamble et al. argue that the strategy of market growth by way of diversification comes with many risks for the reason that it entails launching a new or existing product to a totally different market.
Kourdi (2009, 4) argues that objectives are more intermediate aims that will result in meeting the long term organizational objectives. The objectives should be realistic, achievable, time-bound, measurable, and specific (Whittington, 2000, 6). As per the information determined through environmental scanning, the below SMART goals have been determined to aid in launching of Asida product across Nigerian market. To attain a 30% market share of the food and beverage for the lower living standards measures level consumers within the region before end of 2020 2) To improve the present portfolio of the firm’s corporate social sustainability and responsibility via campaigning for healthier and cheaper diets for the general public people by 2020 3) To create public awareness of the mass market, average income earners before end of 2020, attaining 70 percent customer brand recognition in evaluation of market research.
Strategy According to Schmitt (2000, 27), the most commonly used form of promotions across rural Africa region is experiential marketing. Changes in the market share ratios and sales figures should also be examined so as to evaluate the successful marketing practices as well those that are affecting consumer demand and product image in a negative way. SALES FORECAST 4. Estimated Income For the proposed Asida maize product, the anticipated revenue margins are likely to be a bit low compared to other products manufactured. However, we expect the level of demand to be very high as well as low material and production costs. This means that in near future, Asida maize product will be among the most profitable profits within the same product line manufactured by the company.
Interpersonal communication between the operations and marketing department is great essence in ensuring that right production quantity is availed to avoid a production surplus (where goods are left unsold and perishes with time or need to be stored) and a production deficit (that can leave most customers wanting the product) as well as meet customers demand. CONCLUSION 5. Conclusion Throughout Nigeria, Dangote Company sells a variety of products and services in different industries. Flour, fruit juices, sugar and pastas are some of their series of food and beverage products. Being among the most famous companies in the region, it can focus on growing its existing business via expansion into another market in the same food and beverage sector as well as use its present expertise and skills in the region to offer an affordable product to low living standards measurement levels in the area.
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