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 objective of this project is to assess the degree of acceptance of the new product (date milkshake) which the company intends to introduce in the market.
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. Dates are known to be rich in natural fibers (Kleiman & Lawrence, 2008). 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 (Hampden, 1990). 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 in stead 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 (Craig, 2009). The reason why the market continues to grow is because the company has invested on promoting its products in mass media in addition to producing quality products that meets the preference of the consumers. The company invests on a diverse range of products that target the fast growing segment of health conscious consumers who are looking for more natural and healthy options, devoid of some health hazards, without compromising on taste.
The idea of introducing a new brand in the market is one of the major strengths of the company (Tybout et al, 2005). 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 (Clow & Baack, 2007).
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.
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.
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
- How many brands of Lacnor Company products 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?
- How do you rate the packaging of the Lacnor Company’s products?
- Do you know of a new brand which has been introduced in the market by the Lacnor Company? 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
Respondents
Data Analysis
The Lacnor has engaged in intense promotion for its product as seen by the responses; 70% of the people getting to know of the product. The most effective mode of promotion has been the T.V 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.
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 attributed to be satisfactory by the respondents who have used the product; 85%. Concerning the new product, a bigger size of the population have come to know about it; 65%. 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 they are similarly good.
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.
The new product introduced; the Milk shake product, has enjoyed a bigger size of the respondents who have tasted it; 65% of them and did like it. The coming into being of the New Milk shake product was facilitated more by the media and internet.
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.
References
Clow, F & Baack. D, (2007). Integrated Advertising, Promotion, and Marketing Communications. New Jersey: Prentice Hall.
Craig, S. (2009). Merrill Bonus Case Widens as Deal Struggles. Wall Street Journal
Hampden. T, (1990).Creating Corporate Culture. Boston: Addison-Wesley Press.
Juneja J, Himanshu F & Prachi J (2011).Management. Management Study Guide, WebCraft Pvt Ltd Journal. Vol. 26 Series 130.
Kleiman, Lawrence S, (2008). Management and Executive Development: Encyclopedia of Business Journal Business. Retrieved from http://www.usq.edu.au/extrafiles/business/journals/HRMJournal/AJMOBarticles/Org%
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.
