Marketing Project – Lacnor Company
Introduction
It is worth noting from the onset that the overriding factor in any business venture is to maximize on profit making. The profitability of a business is dictated by the availability of the target market. For a business to boast of having a vast market it must endear itself in good business ethics and a well laid market plan (Juneja et al, 2011). That is why there is need to do thorough marketing for the products of a company. The marketing strategy adopted by the company contributes immensely to its success or failure of a new product when first introduced in the markets. To introduce a new brand in the market, the Lacnor Company should embark on a thorough marketing and research as far as this new product is concerned. Lacnor is one of the leading fruit juice and dairy products company in the United Arabs Emirates (UAE). It has since gained acclamation for the good products it is trading on. Quality has been the buzzword for Lacnor Company and this factor has enabled it to meet the global standards by producing superior and safe products. The aim of this paper is to analyze and evaluate how the date milk shake, a new product, that the company will introduce into the market will be perceived by the customers.
Brief about the Date Milkshake
This is a delicacy which is made majorly from two basic ingredients; which are the milk and the dates. Dates are fruits which originate from the date palm tree (Barkla, 2009). Dates are known to be rich in natural fibres (Barkla, 2009). Modern medicine has also proved that dates are effective in preventing abdominal cancer. They do surpass other fruits in the magnificent variety of their constituents. They contain oil, iron, potassium, calcium, Sulphur, phosphorous, magnesium, manganese, and copper. The date milkshakes are delicious, fulfilling, and full of calories! A person once described it that it is “a shake you eat more than you drink” as the date milkshake is a very thick drink.
The scope of the project is to set a target of at least thirty prospective customers. It would be a one day’s research as it only seeks to introduce only one new brand of the Lacnor Company product in the existing markets.
Findings
From the research carried out, it has been revealed that the company has done quite a substantial job as far as advertisement is concerned because many of the customers were attracted by the company’s products through the campaigns being conducted through the mass media (Shaw, 2012). It has also been revealed that Lacnor is a well-known Company in the hospitality industry as most of its products are preferred in big hotels and lodges. Many customers would do with juice instead of a cup of beverage in the mid-morning hours.
It has also been found out that there is stiff competition geared towards Lacnor’s products due to the fact that there are some alternatives to its products which the customers can as well fall back to. However, the customers still like the Lacnor’s products due to their quality.
Though Date Milkshake is still new in the market it is known and liked by a bigger percentage of the sampled customers (65%).
Analysis
It is important to point out that, the Lacnor Company has a bright future given the fact that it has a bigger customer base and its market is growing, which is a recipe for growth (De Mooij, 2009). Key factors that have facilitated steadfast growth of the firm are that the firm has invested heavily on advisements in the mass media and secondly because it is dedicated in making quality products that exceeds the customer expectations. The product diversity has been incorporated into the organization to meet the various market segments or customer circumstances. This has served well the health conscious customers who want these health products with a modern taste though. The idea of introducing a new brand in the market is one of the major strengths of the company (Field, 2006). The Date Milkshake has stormed the market due to the fact that it is liked by most people while it is still at its inception stage. This product alone would serve to boost the image of the company, thus expanding its market and consequently contributing to its profitability.
The fact that the Lacnor’s customers have alternative products to fall on if push comes to shove shows that the company is not spared as far as competition is concerned. This is a threat to the company. This means that it must offer competitive products and services in order to continue enjoying its market niche (Shimp, 2008).
There is the need for the company to go regional as this is what has come out strongly in the opinion of many customers. This would actually increase its area of operation thus boosting its customers’ base (Tybout et al, 2005).
Data Analysis
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Analysis: According to the above, the Lacnor has engaged in intense promotion for its product as seen by the responses with 70% of the people getting to know of the product.
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The most effective mode of promotion has been the TV and radio as well as the internet, reaching 40% and 30% respectively of the responses. The company is engaged in several products. The participants are known to prefer the product due to its high quality, consideration for health by using natural and healthy choices and the lack of use of chemicals.
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Most of the respondents prefer certain brands to others. The brands of juice preferred are the mango juice while the milk is the low fat. The packaging of brands is said to be satisfactory by the respondents who have used the product. 85% put thumbs high for it.
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Concerning the new product, a bigger part of the population has come to know about it; 65% of the respondents knew about it, mainly ads though the media.
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According to the chart above, based on the quality of the product, most respondents were convinced that Lacnor was determined. The product is regarded as being a substitute to other products as that are similarly good with 93% of the respondents recommending it. However, apart from the Lacnor Company products, the Milco company product is the other company whose product is preferred. The reason for this preference is that it takes into consideration the quality of its products and consumer satisfaction.
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The new product introduced; the Milk shake product has enjoyed a bigger size of the respondents who have tasted it; 65% of them did like it. The coming into being of the New Milk shake product was facilitated more by the media and the internet.
According to the respondents, a large number of them are sure of the number of brands that the company has. It is only a few numbers of them that are not aware of the number of brands that the company has.
According to the respondents, the juice brand has a lot of variants to which they prefer the mango juice; 85%. The other brands are distant apart though a small number of respondents prefer them too.
All in all for the company to be able to become more competitive, most of the respondents opted that it should make its product readily available to the customers easily. This may be done by spreading its outlets to several places. This was stated as the major missing link between the customers and Lacnor Company. This would play a vital role in the Lacnor acquiring a competitive advantage.
Conclusion
Economies of scales should be adopted by any right thinking business investor. It would be of great advantage if the Lacnor Company expands its business regionally. The stiff competitions being experienced in different markets have made it necessary for businesses to expand their operations in order to survive. In addition, for a business venture to operate smoothly with its satellite branches it’s important to ensure that adequate market research and necessary regulations are conducted and observed respectively.
References
Barkla, C. (2009). Fruit Juices. Market News services (MNS). Retrieved from http://www.mnsonline.org/MNSSamples/Fruit_Juices.pdf
De Mooij, M. (2009). Global marketing and advertising: Understanding cultural paradoxes. Thousand Oaks: SAGE.
Field, R. (2006). Lacnor unveils fresh image. Arabian business. Com. Retrieved from http://www.arabianbusiness.com/lacnor-unveils-fresh-image-62733.html
Shaw, W. (2010). Business ethics: A textbook with cases. Mason, OH: Cangage Learning.
Shimp, T. (2008). Advertising, promotion, and other aspects of integrated marketing communications. Mason, OH: Cangage Learning.
Tybout, A. M., Calkins, T., & Kellogg school of management (Ed.). (2005).Kellogg On Branding: The Marketing Faculty of the Kellogg School of Management Authors. New York: John Wiley’s and sons.
Appendix
Questionnaire
(Tick inside the box where necessary).
- Have you heard of Lacnor Company? Yes No
- How did you come to know about the Lacnor Company?
The internet
The newspaper
Through its brands in the super-market
TV and radio
- Which Lacnor Company brands do you know?
- Give at least three reasons why you prefer the products of the Lacnor Company.
I ………………………………………………………………………………………………………………………………………………………………………………………………
II ……………………………………………………………………………………………………………………………………………………………………………………………
III ………………………………………………………………………………………………………………………………………………………………………………………………
- Which brand of juice do you prefer?
- Which brand of milk do you prefer?
- In comparison of competing similar products, how do you perceive the packaging of the products of Lacnor?
- Would you by any chance know of a Lacnor’s new products that have been launched in the market? Yes ( ) No ( ).
If yes, what is the brand and how do you perceive it? …………………………………………………………………………………………..
- Do you think the company emphasizes on quality as it claims judging by its products?
Yes ( ) No ( )
- What in your opinion do you think is the perception of other people regarding the company’s products? ………………………………………………………………………………………….
- Apart from the Lacnor company’s products, which other alternative products do you think suits your taste? ………………………………………………………………….
- Why do you think these alternatives match the status of Lacnor Company’s products? ………………………………………………………………………………………………………………………
- Have you tasted the Lacnor’s Date Milkshake? Yes ( ) No ( ). If yes did you like it? ……………………………………………………………………………………………………………………
- How did you know about the existence of Lacnor’s Date Milkshake? ………………………………………………………………………………………..
- In you our opinion, how would you advise the company in order to make its products more competitive in the markets
