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Posted: January 1st, 1970
Nestle Fruit Yogurt is one of the famous product launched by Nestle all over the world. Most of the countries where Nestle has launched it, have accepted the product very well. This shows that product has potential and if marketed properly can do wonder by enhancing Financial statement profits for Nestle. Here we are making an analysis of UAE as Nestlé’s future destination of launching Fruit Yogurt. In this study we are seeking financial, marketing and Resource planning of Nestlé’s launching campaign in very first year. This analysis can help Nestle in making deciding whether to launch the product in Emirates and how to launch the product.
A marketing plan usually provides a sound framework for development of marketing strategy for any product. There is a list of action items inclusive of objective, sales budget requirement, resource requirement etc. It’s very relevant part of the total business plan. In our first submission, we had talked at length regarding cultural and economic analysis related to market and features of offered product. This project submission will be taking us forward from where we had left in the last assignment. Here, We will take closer look at the nuances of running a good business like understanding target market, designing suitable promotion strategy, having total overview of distribution marketing and production processes.
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The last part has explained in detail about the benefits of the Nestle Fruit Yogurt. It has also explained how it is suitable for UAE climate and how its launch in United Arab Emirates will make a new trend of having healthy snacks and lunch. We, in last part, also analyzed that the market condition of UAE and preference and desires of Emirates.
Now, in this study, we are going to study how to market the product & how will it work in the UAE. We are going to analyze fully what will attract Emirates to our product.
Traditional approach to look at any product that is based on marketing involves the understanding of:
We are going to approach this study in this traditional approach to make a detailed Market launch analysis of the product. (Yogurt)
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Marketing Plan will analyze how to strategize the launch of Nestle fruit Yogurt in UAE. It will check out the advertisement, Promotion and Packaging plans for this new product. The detailed will work as the initial plan for the launch of the product in UAE and it will be subjected to change gradually as the sale will follow the expectation or will deviate from its initial plan.
Since Nestlé’s fruit Yogurt will be totally new product in UAE and therefore is not well known. In our last submission, we had highlighted about specifically targeting the age group of 15-35.This was basically based on the consumption trend of this group.
Sales objectives define the projected quantity of goods that can be sold. Hence it is very relevant for the success of businesses that realistic and achievable objectives should be set. We are expecting the total sale of 650 tonnages of Nestle fruit Yogurt in United Arab Emirates. Our expectation is very optimistic as it is nearly 60% of the total present market.
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As we are planning to have 650 tonnages of sale in UAE, therefore we are expecting Nestle to have at least profit of 9% around on the product which comes in the range of 0.09 percent*650 tonnages *9463 AED per tonnage ~ 553,385 AED which is really decent as we can see that this is just a launch year.
Main objective of advertisement is that it will be to drawing attention of the health conscious customers towards Nestle fruit Yogurt. Since the Nestle Fruit Yogurt belongs to premium segment where more stress will be provided to attract urban area customers who are willing to use something new.
Actually if we start trying segmenting of the people of UAE, we can segregate UAE people into two major categories. One who usually prefers to have new products present in the market and these people are usually called experimenters. Other kind of category which tries to retain their own age-old family used brand which usually bar them from taking any new product.
Seeing this, we need to make its Nestlé’s image to look as fashionable and premium class. To make this image, we can try using some Hollywood star who can endorse our product and which is youth icon famous among Emirates.
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We are planning to use the media mix in such a way to approach every single people in Emirates to make them aware of this new product coming in the market. Since ours will be the first company launching this product on such a large scale in UAE therefore it can become a tough task to inform & to educate consumers about health benefits and differentiation of our product from the entire existing product in the Emirate market. Hence we need to use below given promotion media mix:
The way we are planning to make this promotion is to have it in various phases. Actually, In first phase, we are planning to have awareness program. Then in next phase we are planning to market the real product among the Emirates through use of hoarding, kiosks, banners and all the other media methods.
Nestle Fruit Yogurt should be aiming to recognized as a healthy food product company. This company wants to be known as a firm which usually provides high quality health products. Idea will be to convey its young and premium image to the consumers. Message should be something similar to “Taste with Health!!!….. Try me!!”.
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The objective of sales promotion is usually to attract more and more consumer in the very first year. This will be done by the help of affordable micro packaging of size small as 100g. This will be the smallest container that should be available among the customer because tinier than this package can affect the brand image of Nestle which is the last thing Nestle company want to do.
Premium is used in a way in order to associate our product with real use product needed by segment we are planning to target. Since here for Nestle fruit yogurt we are targeting premium segments youth who are really conscious about their health we can offer them some diet free sugar product.
Other kind of consumer attraction tactics that usually comes when some new product is launched is the Coupon Tactics. Here with Nestle fruit yogurt we can plan to give some consumers who are winning lucky draw, a free gym coupon to some posh area gym.
Cost allotted with promotional strategy will be less only as company will be targeting more of awareness and less of sales. Therefore company will be stressing more on advertisement and less of promotion which appears from the budget itself which allots $10000 only for promotion activities.
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In the initial stage company is not planning to sell its product the personal selling as this will reduce the company’s brand image which is really good considering the international brand image of Nestle.
Promotional strategy which Nestle is planning is already mentioned. As of now, Nestle fruit Yogurt product will not be experimented using some strange and innovative promotional technique. May be it can work Nestle will not be taking risk in UAE market.
Nestle like all of its dairy product will prefer roadways mode of transportation. It will distribute its product to the wholesalers and retailers through Nestle Van which will have freezing facility available with it. Products are of lesser expiry date therefore it will be preferable for Nestle to have its own distribution system to avoid delayed delivery.
Usually, on any package, many kinds of labels are used. Many may include product certifications and trademarks and the food authority approvals. In order to utilize full use of packaging, it is suggestible to publicize the health benefits related with Nestle fruit Yogurt through labeling.
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To avoid piracy and ease operational requirement company should always use bar codes, identification and RFID numbers. This should be done for trouble-free shipment & tracking of the goods. Another related important aspect which needs to be considered is the container standards. It should be of international standard.
Packaging use a significant portion of total cost related with a product. For example, in Dairy Product industry, packaging cost may be as high as 30% of total cost. Whatever be the case company should try to reduce this cost as much as possible. Following international standard of hygiene and maintain a premium quality forces price to increase to go beyond the limits. Therefore company should try to use some beneficial strategy to reduce the packaging cost to be as low as 10% of the product in long term.
It will be there as always but usually depends who is going to bear this charge company, wholesaler or retailer. Here it will be borne totally by wholesaler only. Wholesaler will need something in order to take this cost and keep making profit. Therefore company is giving hefty commission to the wholesalers @ 13.5 %.
Handling expense for making the product to reach on board to fulfill the requirement of FOB will be borne by company itself. This cost will be included in other miscellaneous cost.
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Product Cost |
Percentage of Cost |
||
Fruit Yogurt Cost(650 ton) |
$ 1,100,000.00 |
72.7% |
|
Packaging Cost |
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7.3% |
|
Selling Expense |
$ 85,000.00 |
5.6% |
|
Advertising Expense How Do You Meet My Professor’s Standards?We tailor your paper to your rubric—structure, tone, everything. Our writers decode academic expectations, and editors polish it to perfection, ensuring it’s grade-ready. |
$ 120,000.00 |
7.9% |
|
Distribution Expense |
$ 93,000.00 What’s Your Editing Process?Upload your draft, tell us your goals, and our editors will refine it—boosting arguments, fixing errors, and keeping your voice. You’ll get a polished paper that’s ready to shine. |
6.1% |
|
Misc Expense |
$ 5,000.00 |
0.3% |
|
$ 1,513,000.00 Can You Suggest Paper Topics?Sure! Need ideas? We’ll pitch topics based on your subject and interests—catchy and doable. Pick one, and we’ll run with it, or tweak it together. |
|||
Selling price(Profit Margin 8.7%) |
$ 1,644,631.00 |
Final Price |
AED price |
||
Product Cost |
$ 1,513,000.00 |
AED 5,555,736.00 |
|
Selling price(Profit Margin 8.7%) Do You Offer Rush Revisions?Yes! If you need quick edits, our team can turn it around fast—hours, not days—tightening up your paper for last-minute perfection. |
$ 1,644,631.00 |
AED 6,039,085.03 |
|
Selling Quantity we are targeting (Ton) |
650 |
||
Company Price |
|||
Selling price per ton |
$ 2,530.20 Can You Provide Outlines First?Absolutely! We’ll draft an outline based on your topic so you can approve the plan before we write—keeps everything aligned from the start. |
AED 9,290.90 |
|
Selling price per Kg |
$2.53 |
AED 9.29 |
|
Selling price per 250g Pack |
$0.63 |
AED 2.32 |
|
Selling Price per 100g pack Can You Include Data Analysis?You bet! Need stats or charts? Our writers can crunch numbers and craft visuals, making your paper both sharp and professional. |
$ 0.025 |
AED 0.09 |
|
Wholesale Price (@13.5% WS Commission) |
|||
Selling price per Kg |
$2.87 |
AED 10.55 |
|
Selling price per 250g Pack |
$0.72 |
AED 2.64 |
|
Selling Price per 100g pack |
$0.03 How Do You Handle Long-Term Projects?We break it down—delivering each part on time with consistent quality. From proposals to final drafts, we’re with you all the way. |
AED 0.11 |
|
Retail Price (@13% Retail Commission) |
|||
Selling price per Kg |
$3.25 |
AED 11.92 |
|
Selling price per 250g Pack Can You Write for Global Standards?Yep! Whether it’s UK, US, or Australian rules, we adapt your paper to fit your institution’s style and expectations perfectly. |
$0.81 |
AED 2.98 |
|
Selling Price per 100g pack |
$0.03 |
AED 0.12 Is there a possibility of plagiarism in my completed order?We write every paper from scratch just for you, and we get how important it is for you to feel confident about its originality. That’s why we double-check every piece with our own in-house plagiarism software before sending it your way. This tool doesn’t just catch copy-pasted bits—it even spots paraphrased sections. Unlike well-known systems like Turnitin (used by most universities), we don’t store or report anything to public databases, so your check stays private and safe. We stand by our plagiarism-free guarantee to ensure your paper is totally unique. That said, while we can promise no plagiarism from open web sources or specific databases we check, no tech out there (except Turnitin itself) can scan every source Turnitin indexes. If you want that extra peace of mind, we recommend running your paper through WriteCheck (a Turnitin service) and sharing the report with us. |
(Statistics, 2003)
In this plan we are going to study detailed financials about the Nestle Yogurt Product. The product financial will include product costing and product pricing for the UAE market. Most of the pricing we are doing in $ terms and at last we are converting them in AED terms.
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AED 146,880.00 |
|
Newspaper Advertisement |
$20,000.00 |
AED 73,440.00 |
|
Kiosk Advertisement |
$10,000.00 |
AED 36,720.00 |
|
Magazine Advertisement |
$20,000.00 |
AED 73,440.00 |
|
Banners |
$10,000.00 |
AED 36,720.00 |
|
BillBoards |
$10,000.00 |
AED 36,720.00 |
|
Promotion |
$10,000.00 |
AED 36,720.00 |
|
Advertising Expense |
$ 120,000.00 |
AED 440,640.00 |
Distribution Cost |
|||
Store Payroll |
$ 20,000.00 |
AED 73,440.00 |
|
Store Management |
$ 10,000.00 |
AED 36,720.00 |
|
Rent |
$ 10,000.00 |
AED 36,720.00 |
|
Utilities |
$ 10,000.00 |
AED 36,720.00 |
|
Depreciation |
$ 10,000.00 |
AED 36,720.00 |
|
Repair |
$ 20,000.00 |
AED 73,440.00 |
|
Maintenance |
$ 13,000.00 |
AED 47,736.00 |
|
Total Distribution Expense |
$ 93,000.00 |
AED 341,496.00 |
Processing Milk to Yogurt cost |
||
Raw product Milk(600 ton) |
$800,000.00 |
|
Processing Variable Cost |
||
Sugar |
||
Stabilizers |
||
Fruit /Flavors |
||
Bacteria Culture |
||
Fuel |
||
Total |
$200,000.00 |
|
Processing Fixed Cost |
$100,000.00 |
|
Final Yogurt product(620 ton) |
$ 1,100,000.00 |
Product Cost |
Percentage of Cost |
||
Fruit Yogurt Cost(650 ton) |
$ 1,100,000.00 |
72.7% |
|
Packaging Cost |
$ 110,000.00 |
7.3% |
|
Selling Expense |
$ 85,000.00 |
5.6% |
|
Advertising Expense |
$ 120,000.00 |
7.9% |
|
Distribution Expense |
$ 93,000.00 |
6.1% |
|
Misc Expense |
$ 5,000.00 |
0.3% |
|
$ 1,513,000.00 |
|||
Selling price(Profit Margin 8.7%) |
$ 1,644,631.00 |
Final Price |
AED price |
||
Product Cost |
$ 1,513,000.00 |
AED 5,555,736.00 |
|
Selling price(Profit Margin 8.7%) |
$ 1,644,631.00 |
AED 6,039,085.03 |
|
Selling Quantity we are targeting (Ton) |
650 |
||
Company Price |
|||
Selling price per ton |
$ 2,530.20 |
AED 9,290.90 |
|
Selling price per Kg |
$2.53 |
AED 9.29 |
|
Selling price per 250g Pack |
$0.63 |
AED 2.32 |
|
Selling Price per 100g pack |
$ 0.025 |
AED 0.09 |
|
Wholesale Price (@13.5% WS Commission) |
|||
Selling price per Kg |
$2.87 |
AED 10.55 |
|
Selling price per 250g Pack |
$0.72 |
AED 2.64 |
|
Selling Price per 100g pack |
$0.03 |
AED 0.11 |
|
Retail Price (@13% Retail Commission) |
|||
Selling price per Kg |
$3.25 |
AED 11.92 |
|
Selling price per 250g Pack |
$0.81 |
AED 2.98 |
|
Selling Price per 100g pack |
$0.03 |
AED 0.12 |
Misc Expense |
$ 4,000.00 |
Profit And Loss Statement |
AED |
|||
Income |
Revenue |
$ 1,644,631.00 |
AED 6,039,085 |
|
Expense |
||||
Cost of Goods Sold |
800,000.00 |
AED 2,937,600 |
||
Processing Variable Expense |
200,000.00 |
AED 734,400 |
||
Processing Fixed expense |
100,000.00 |
AED 367,200 |
||
Packaging Cost |
$ 110,000.00 |
AED 403,920 |
||
Selling Expense |
$ 85,000.00 |
AED 312,120 |
||
Advertising Expense |
$ 120,000.00 |
AED 440,640 |
||
Distribution Expense |
$ 93,000.00 |
AED 341,496 |
||
Misc Expense |
$ 5,000.00 |
AED 18,360 |
||
Total Expense |
1,513,000.00 |
AED 5,555,736 |
||
EBIT |
$ 131,631.00 |
AED 483,349 |
||
Interest |
$ 55,000.00 |
AED 201,960 |
||
EBT |
$ 76,631.00 |
AED 281,389 |
||
Tax @ 20% |
$ 15,326.20 |
AED 56,278 |
||
Net Income |
$ 61,304.80 |
AED 225,111 |
(Ng, 2007)
Whatever is the marketing plan, until and unless you are not getting your Resource requirement fulfilled, you cannot start a business. This section, we will study about the way the company will be able to get its resources right.
Usually Company gets its finances from either debt or equity or through some stake acquisition by some other firm. It will be totally dependent on cost of capital of raising money from the market and cost of debt of raising money from debt. We are assuming to have overall cost of capital as 5%. The launching project will include total requirement of 1.1 million out of which company can plan to have 6 million as debt and 5 million as equity.
Any firm while expanding or launching a new product will require some Personnel. The company should be ready with kind of skills portfolio which company will need for its operation. There can be many skills portfolios which company can look into while planning for the launch of new product like:
Depending on the scale which we are launching, Company’s requirement will be decided. For the 650 tonnages of requirement company will need as per follows:
Marketing |
60 |
Sales |
600 |
Operations (including distribution and packaging) |
1200 |
Finance |
10 |
Human Resource |
40 |
Information Technology |
5 |
Production capacity should be planned as per company’s aim of expanding in future. As per seeing Nestlé’s trend of expansion plan in other countries, we can assume following as company’s capacity requirement in future.
Nestle should have production capacity accordingly.
As we can see from the analysis, we can conclude that the launch of Nestle Fruit Yogurt in United Arab Emirates will be a sure success. Estimated Income statement of very first year is showing Net Income of
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